Commercial Metals (CMC) stock surged 5.60% in intraday trading, riding the wave of optimism in the steel sector following a bullish report from UBS analysts. The rally comes despite UBS maintaining a neutral rating on Commercial Metals, as the broader steel industry benefits from potential tailwinds created by recent tariffs on steel imports.

UBS analysts upgraded other major players in the sector, such as Nucor and Steel Dynamics, to buy ratings. They cited that the recent selloff in steel stocks is misaligned with the positive impact of new steel protections, which have led to material shortages and price increases. The analysts expect less demand destruction in the industry this year than the market fears, with U.S. shipments likely to benefit from a pullback in imports.

While UBS maintained its neutral stance on Commercial Metals with a price target of $49, down from $54, the company's stock still rallied alongside its peers. The broader positive sentiment in the steel sector, driven by expectations of solid price levels due to higher scrap costs and import parities from tariffs, appears to be lifting all boats in the industry.