Australia's Sims rises after Jefferies, Morningstar raise FY26 earnings estimates

Sims

19/03/2026 24:22

Updates

** Shares of Australia's Sims SGM.AX up as much as 6% at A$21.93

 ** Stock set for its fifth consecutive session of gains, if current trend holds

** Jefferies says scrap recycler's trading update is "well ahead" of consensus, Morningstar follows suit

** On Wednesday, co said it expects FY26 underlying earnings before interest and taxes (EBIT) between A$350 million ($248.68 million) and A$400 million, up from A$174.9 million in FY25

** For FY26, Jefferies raises Sims' EBIT estimate, Morningstar lifts underlying EBIT estimate

** Jefferies notes co to benefit from joint ventures in North America and Saudi Arabia for its metals recycling business

** Morningstar says data center demand for metals, elevated copper, aluminum prices would drive profits in North American operations

** Jefferies maintains "underperform" rating on Sims stock, raises PT to A$19 from A$17.4

** Five of 12 analysts rate the stock "buy" or higher, four "hold" and three "sell" or lower; their median PT is A$22.18 – LSEG data

** SGM up 17.9% YTD, including the day's moves

(Reporting by Aamir Sheik Khalid in Bengaluru)

((Aamir.SheikKhalid@thomsonreuters.com))