Sep. 9 at 4:41 PM
JPMorgan initiated coverage of Reliance Steel & Aluminum with an Overweight rating and a
$350 target, citing steady growth, diversification, and resilience that investors undervalue. The target implies ~17% upside.
Analysts highlighted Reliance’s decentralized model, focus on value-added processing, and broad geographic reach, which reduce earnings volatility compared to steelmakers. Its largest customer accounts for under 1% of sales, with over 95% from repeat clients. Local decision-making also supports just-in-time delivery and higher inventory turnover, limiting working capital risk.
$RS $JPM