Russel Metals Receives a Hold from TD Securities

By Ryan Adsit

Russel Metals (TSX: RUS), the Services sector company, has received a rating update from a Wall Street analyst on May 15. Analyst Michael Tupholme from TD Securities remains neutral on the stock and has a C$30 price target.

Tupholme noted:

“We note that shipments of carbon plate (an important product for Russel) on a tons/day basis improved for a third straight month in April 2017 in Canada (+12.5% y/y vs. +7.6% y/y in March). U.S. carbon plate shipments on a tons/day basis also increased at a healthy rate (+5.2% y/y vs. +8.4% y/y growth in March).”

According to, Tupholme is ranked #3211 out of 4566 analysts.

Russel Metals has an analyst consensus of Strong Buy, with a price target consensus of C$30.15.

Based on Russel Metals’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$804 million and quarterly net profit of C$29.6 million. In comparison, last year the company earned revenue of C$662 million and had a net profit of C$7.8 million.

Russel Metals, Inc. is a metal distribution and processing company. It distributes steel products and conducts its distribution business. The company operates through the following business segments: Metals Service Centers, Energy Products, Steel Distributors and Other. The Metals Service Centers segment provides processing and distribution services to a broad base of customers. It purchase these products primarily from North American steel producers and package and sell them to end users. The Energy Products segment distributes oil country tubular goods, line pipe, tubes, valves and fittings primarily to the energy industry in Western Canada and the U.S. The Steel Distributors segment sell steel in large volumes to other steel service centers and large equipment manufacturers. The main steel products sourced by this segment are carbon steel plate and coils, structural beams, pipe and tubing. Russel Metals was founded on January 1, 2002 and is headquartered in Mississauga, Canada.

The company’s shares closed last Tuesday at $25.20.