Analysts at RBC Capital Markets and TD Securities raised their price targets on Russel Metals Inc. (RUS.TO) to $55 from $51, and to $57 from $50, respectively.

RBC analyst James McGarragle maintained an Outperform rating on shares of the Canadian metals distribution company following its quarterly results after market close on Wednesday.

The stock declined $4.52, or 8.8%, to $46.93 on the Toronto Stock Exchange Thursday.

"Key for us from the quarter though was commentary that recent positive PMI readings are consistent with conversations management is having with its customers, pointing to a solid demand backdrop to start the year," McGarragle said in a note to clients.

"This combined with higher steel pricing as well as integration upside from Kloeckner point to an inflection in ROIC, which we expect to be an important driver of earnings growth in 2026," the analyst said.

"Therefore, we're surprised to see the shares trade down today and continue to flag an attractive investment opportunity."

TD analyst Michael Tupholme maintained a Buy rating on the stock.

"While margins at recently acquired Kloeckner locations are expected to act as an offset near-term, there is an opportunity to drive improvements over time," Tupholme said in a note to clients.

"We see RUS' valuation as attractive."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)