JPMorgan Initiates Coverage of Commercial Metals (CMC) Stock With $52 PT

On May 30, JPMorgan initiated coverage on Commercial Metals Company (NYSE:CMC)’s stock with a “Neutral” rating and a price objective of $52.00, as reported by The Fly. The analysis demonstrates that Commercial Metals Company (NYSE:CMC) is on the verge of ending a significant capital expenditure cycle, which can lead to increased FCF and enhanced returns for shareholders.

A close-up of a worker welding a steel product, showing the precision and craftsmanship.

The company is expected to focus its future growth on the high-margin, early-stage construction market. Furthermore, the management rolled out a company-wide initiative known as TAG (Transform, Advance, and Grow), which is targeted at achieving sustainably increased profitability across economic cycles. This effort happens to be a critical component of the company’s long-term strategic plan, which can help Commercial Metals Company (NYSE:CMC) fuel commercial and operational excellence.

While there are certain positive factors, JPMorgan also noted some concerns, which revolve around gloomy near-term market indicators for the non-residential construction. Notably, the uncertain macroeconomic environment, which is characterized by unpredictable trade environment and persistently elevated interest rates, can weigh on the sector.

Commercial Metals Company (NYSE:CMC)’s balance sheet strength and cash flow profile continue to offer capital allocation flexibility. It expects FY 2025 capex to be between $550 million – $600 million.

Commercial Metals Company (NYSE:CMC) is engaged in manufacturing, recycling, and fabricating steel and metal products, and related materials and services.

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Disclosure: None.