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Research Alert: CFRA Maintains Hold Opinion On Shares Of Reliance, Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Reliance, Inc.
Mar 11, 2026 5:32 AM

12:05 PM EST, 02/25/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $39 to $337, based on an EV/EBITDA of 11.0x our 2027 EBITDA estimate, a modest premium to Reliance's three-year avg. forward EV/EBITDA of 10.5x. We decrease our 2026 EPS estimate by $1.70 to $16.81 and initiate our 2027 EPS forecast at $18.34. Reliance demonstrated strong execution in 2025, achieving record tonnage of 6.4M (up 6.2% Y/Y) and expanding U.S. market share to ~17% from 15%, significantly outpacing industry volumes. The company's diversified business model continues to drive profitable growth, with management guiding Q1 2026 tons up 5%-7% Q/Q and pricing up 3%-5% Q/Q on healthy demand across key end markets including infrastructure, data centers, energy, and defense. While aluminum tariffs pressured margins in 2025, RS expects improvement through 2026 and reaffirms its 29%-31% gross margin range. Strong cash generation ($831M operating cash flow) and modest leverage (0.9x net debt-to-EBITDA) support continued capital returns and growth investments.

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