Australia's Sims is a beneficiary of the artificial intelligence boom, says Morningstar

Sims

Yesterday 04:34

** Analysts at Morningstar are upbeat on Australia's Sims SGM.AX after metal recycler hiked its annual underlying earnings forecast on Wednesday
** "Sims is a beneficiary of investor interest in companies supporting the artificial intelligence boom" - Morningstar
** Adds, co is exposed to AI-driven demand via its computer and electronics recycling businesses
** Investment research firm says Sims is exposed to spot pricing, and its profitability rises when prices rise
** Morningstar raises its fair value estimate for SGM by 2% to A$17.30 per share
** Shares of SGM down 0.9% as of 0329 GMT, while the broader ASX 200 index .AXJO is down 0.4%
** Stock gained as much as 1.8% earlier in session
** Stock up nearly 65% this year, including the day's move

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))