Metals USA gets 'buy' rating in bullish Dahlman Rose review

Oct 08, 2010 | 10:47 AM | Corinna Petry

Investment bank Dahlman Rose & Co. has begun coverage of Metals USA Holdings Corp. with a "buy" rating.

"Despite an uncertain economic recovery, the company should exhibit improving earnings per share and earnings before interest, taxes, depreciation and amortization (Ebitda) and we anticipate that a growth-through-acquisition strategy in a fragmented sector could provide additional earnings power," Anthony B. Rizzuto Jr., the New York bank's metals analyst, said in a research note. He expects the Tampa, Fla., service center chain, which went public in the spring, "to execute several acquisitions over the medium term."

Even without making acquisitions beyond its July purchase of J. Rubin & Co., a distributor of carbon steel bar, plate and laser-cut flat-rolled products, "the company should continue to improve earnings," he said.....

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