Russel Metals Inc. (RUS:CA) — Scotiabank maintained its Outperform rating and raised its price target to C$113.00 from C$89.00. The target change represents a 27.0% increase. Russel Metals reported record second-quarter revenue and shipments, improved gross margins and a larger earnings contribution from its Kloeckner acquisition. Looking ahead, investors will be watching whether acquisition integration and stronger volumes sustain returns on capital. Steel pricing, industrial demand, inventory management and working-capital requirements will determine the durability of earnings growth.
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