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

Sims

08/09/2025 05:39

Updates

** Metal recycler Sims SGM.AX falls as much as 5.4% to A$13.2, lowest since April 9

** Stock among the top losers on the benchmark ASX200 index .AXJO, which is down 0.4%

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

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

** Co reported FY25 adj 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

** Stock last down 2.2%, trims YTD gains to 14.9%

($1 = A$1.5270)

 (Reporting by Nikita Maria Jino and Kumar Tanishk in Bengaluru)

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