
RS Stock Forecast & Price Target
RS Analyst Ratings
Bulls say
The financial outlook for Reliance Inc is strengthened by an upward revision in its price target, reflecting increased EBITDA expectations and higher target multiples, indicating that the company is beginning to align more closely with industry averages. Anticipated growth is bolstered by a substantial capital expenditure plan of nearly $1 billion from 2022 to 2025, expected to yield significant returns, and a robust dividend policy that includes a nearly 15% increase in February 2023, demonstrating a commitment to shareholder value. Additionally, Reliance's strong free cash flow generation, under-leveraged balance sheet, and potential for mergers and acquisitions position the company favorably against future market dynamics.
Bears say
The financial analysis indicates that Reliance Inc. is facing a decline in LIFO income expectations, dropping from $160 million to an estimated $140 million for 2023, while the company's guidance aligns at $140 million. Additionally, a forecasted LIFO income of only $80 million for FY24 reflects a concerning trend with average metal procurement prices decreasing by over 4%. Key risks include potential weaker demand and pricing pressures, particularly influenced by external factors such as COVID-19, which may adversely affect overall market demand.
This aggregate rating is based on analysts' research of Reliance Steel & Aluminum and is not a guaranteed prediction by Public.com or investment advice.
RS Analyst Forecast & Price Prediction
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