Australia's Sims falls; Morgan Stanley cuts PT on downbeat outlook

Sims

08/09/2025 01:26

** Sims SGM.AX falls as much as 3.5% to A$13.46, lowest since April 11

** Morgan Stanley cuts PT to A$12.5 from A$13; retains "underweight"

** Lowers EBIT estimates by 19%, 6% for FY26, FY27 respectively, on lower margins

** Metal recycler reported FY25 adjusted EBIT of A$174.9 mln ($114.5 mln), 6% above Visible Alpha estimates

** Brokerage flags "mixed" outlook commentary

** Says while non-ferrous demand, U.S. ferrous demand expected to remain strong, elevated China steel exports continue to pressure global ferrous prices

** Adds near-term earnings remain pressured by weak ferrous margins; stock's valuation looks "elevated"

** SGM gains 17.4% this year, as of last close

($1 = A$1.5270)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))