Australia's Sims falls after Jefferies flags challenging global scrap market

Sims

30/01/2025 03:33

** Shares of metal recycler Sims  SGM.AX  fall as much as
4.6% to A$12.930, logs biggest intraday percentage decline since
Nov. 13
    ** Stock is the fifth biggest percentage loser in the
benchmark ASX 200 index  .AXJO 
    ** Jefferies expects SGM's earnings will continue to be
weighed down by challenging global scrap markets, despite recent
margin improvements
    ** Brokerage says SGM's broader strategy of turning around
the North American business remains unclear in a more
competitive U.S. market
    ** Raises price target to A$11.40 from A$10.70, maintains
"underperform" rating 
    ** New PT represents a discount of ~16% as of stock's last
close
    ** 1 of 12 analysts rate the stock "buy", 8 as "hold" and 3
"sell" or lower; their median PT is A$13.50 – LSEG data
    ** Stock last year fell ~24% vs AXJO's 7.5% gains

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))