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BUZZ-Jefferies cuts Commercial Metals to 'hold' on debt concerns

Reuters
Oct 22
BUZZ-Jefferies cuts Commercial Metals to 'hold' on debt concerns

** Jefferies downgrades Commercial Metals Company CMC.N to "hold" from "buy", maintains PT at $70

** Brokerage warns co's net debt is set to rise significantly after the precast concrete supplier Foley Products' acquisition, which could lead to slower shareholder returns in the near term

** Jefferies sees more near-term upside in flat-rolled steel over rebar, driven by seasonal demand, rising imports and expected Fed rate cuts

** Notes it prefers CMC peers Nucor NUE.N and Steel Dynamics STLD.O due to their stronger liquidity and greater benefits from tariffs, making them more attractive at current valuations

** Four of 13 brokerages rate the stock "buy" or higher, nine "hold"; their median PT is $64 - data compiled by LSEG

** Stock up 25.1% YTD, as of last close

(Reporting by Apratim Sarkar in Bengaluru)

((Apratim.Sarkar@thomsonreuters.com))

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