KeyBanc Starts Ryerson Holding (RYI) at Buy

KeyBanc initiated coverage on Ryerson Holding (NYSE: RYI) with a Buy rating and a price target of $17.00.

Analyst Philip Gibbs said, "We believe RYI shares are suited for aggressive micro-to-small cap GARP basic materials investors given: 1) potential for consistent and meaningful EBITDA margin expansion via the Company's operational re-positioning and expense leverage to volume improvements in a modest U.S. GDP growth environment; 2) a sizeable valuation discount on EV/EBITDA metrics vs. its U.S. metals distribution peer group; and 3) robust 2015-2016 free cash flow potential (15%+ yield per annum) and available liquidity to offer opportunities for balance sheet net debt reduction and/or debt refinancing of high yield notes."

For an analyst ratings summary and ratings history on Ryerson Holding click here. For more ratings news on Ryerson Holding click here.

Shares of Ryerson Holding closed at $12.37 yesterday.

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