NEW YORK, April 4 (Reuters) - Reliance Steel & Aluminum Co shares could nearly double from current levels if the U.S. economy recovers faster than expected and industrial companies need more products, newspaper Barron's said in its April 5 edition.
Reliance, the largest U.S. metal warehousing company, could benefit amid evidence that aerospace, capital equipment, commercial construction, electronics and semiconductor companies might be on the cusp of a 'torrid restocking' of inventory, Barron's reported.
Reliance will benefit as end-users buy metals both to meet growing demand and to rebuild depleted inventories, Barron's said, adding that the Los Angeles-based company is entering a period when rising prices will send gross profit sharply higher.
Reliance declined to comment to the newspaper, citing a 'quiet period' ahead of its first-quarter earnings report.
Reliance's profit per share fell more than two-thirds in 2009 to $2.01, but analysts expect it to rise to $3.39 this year and $4.70 in 2011, Barron's said.
It said one private investor believes 2011 profit could reach $8 or more per share, which would justify a stock price of $80 to $96, even if real U.S. gross domestic product increased at only a 2.5 percent annualized pace.
Reliance shares closed Thursday at $50.97 on the New York Stock Exchange. The stock market was closed on Friday for the Good Friday holiday.
(Reporting by Jonathan Stempel; Editing by Leslie Adler) Keywords: RELIANCE/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Reliance, the largest U.S. metal warehousing company, could benefit amid evidence that aerospace, capital equipment, commercial construction, electronics and semiconductor companies might be on the cusp of a 'torrid restocking' of inventory, Barron's reported.
Reliance will benefit as end-users buy metals both to meet growing demand and to rebuild depleted inventories, Barron's said, adding that the Los Angeles-based company is entering a period when rising prices will send gross profit sharply higher.
Reliance declined to comment to the newspaper, citing a 'quiet period' ahead of its first-quarter earnings report.
Reliance's profit per share fell more than two-thirds in 2009 to $2.01, but analysts expect it to rise to $3.39 this year and $4.70 in 2011, Barron's said.
It said one private investor believes 2011 profit could reach $8 or more per share, which would justify a stock price of $80 to $96, even if real U.S. gross domestic product increased at only a 2.5 percent annualized pace.
Reliance shares closed Thursday at $50.97 on the New York Stock Exchange. The stock market was closed on Friday for the Good Friday holiday.
(Reporting by Jonathan Stempel; Editing by Leslie Adler) Keywords: RELIANCE/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.