BMO Capital cuts Reliance Steel stock rating on margin outlook

BMO Capital has downgraded Reliance Steel & Aluminum (NYSE:RS) to Market Perform from Outperform, lowering its price target from $340 to $320. The firm cited a more moderate margin recovery than anticipated, limited near-term specific catalysts, and the stock’s current valuation, which InvestingPro data suggests is overvalued. Despite this, BMO Capital acknowledged Reliance Steel as a high-quality metals service center with strong free cash flow and a healthy balance sheet, and the company recently reported strong Q4 2025 earnings, surpassing revenue and EPS estimates.

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