11:16 AM EDT, 09/30/2025 (MT Newswires) -- Stifel Canada on Tuesday reiterated its buy rating on the shares of Russel Metals ( RUSMF ) and its C$48.00 price tag after the company acquired seven U.S. service centers for US$118.6 million.

"We estimate the acquisition will increase RUS's 2026E EBITDA of $346 mm by approximately 8% and the EPS impact is approximately 4-5%.RUS has announced a C$165 mm acquisition of seven service centres in the U.S. for 5.9x EV/EBITDA (RUS 2026E EV/EBITDA: 6.6x), financed by the company's existing credit facility. Strategically, it significantly increases the company's geographic footprint in Florida and Texas, which are favourable operating areas. Over the medium-term, we believe RUS clearly has the potential to significantly increase EBITDA margins for the acquired assets as they are only at 4.0%, compared to the company's corporate consolidated margin of 7.5%. The potential upside from these assets if they reach the corporate average is +US$17 mm compared to the current contribution of ~US$20 mm," analyst Ian Gillies wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 41.52, Change: +0.16, Percent Change: +0.39