Analyst cuts CMC earnings outlook on construction ills

Dec 22, 2008 | 12:20 PM | Maria Guzzo

Any benefit Commercial Metals Co. (CMC) may derive from Barack Obama's proposed infrastructure spending package may be offset by the continued downturn in non-residential construction, according to Morgan Stanley research analyst Mark Liinimaa.

"The stock has rallied recently on stabilizing steel prices, indications of bottoming U.S. operating rates, low inventories and news of infrastructure-focused stimulus plans," Liinimaa wrote in a report. "After the recent 117-percent run in CMC shares, we believe risk-reward has become more balanced, and that there is a risk of an early year sell-off as the focus shifts to a potential severe slowdown in....

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