UPDATE: Jefferies Reiterates On Reliance Steel & Aluminum On Improved Cycle Outlook

In a report published Monday, Jefferies analyst Luke Folta reiterated a Hold rating on Reliance Steel & Aluminum (NYSE: RS), and raised the price target from $76.00 to $79.00.

In the report, Jefferies noted, “Per our analysis, we see N.A. capacity consolidation and tighter global scrap supply supporting higher LT U.S. steel prices (vs prior est.) and we've increased est./TP's accordingly. Global markets however are far weaker and imports continue to increase, leading us to believe near term weakness in steel is likely. With an improved cycle outlook, we advise investors to continue to hold steel stocks, using any such near term pullback to add to positions.”

Reliance Steel & Aluminum closed on Friday at $72.60.