Citi cuts earnings estimates for Australia's Sims on potential iron ore retreat

Sims

08/08/2023 20:40

** Analysts at Citi cut FY23 earnings before interest and
tax (EBIT) estimates on Australia's Sims Ltd  I8M.F   SGM.AX  by
2% to A$258 mln ($168.58 mln) against Visible Alpha consensus of
A$243 mln
    ** Citi expects the ferrous and non-ferrous metals firm to
deliver a full-year distribution per security of A$0.34 compared
with a consensus of A$0.35
    ** Brokerage forecasts FY23 net profit after tax (NPAT) of
A$175 mln, 2% lower compared to FY22
    ** Expects iron ore prices to be lower in the December
quarter, which might have a downside risk for co
    ** Adds if China restricts steel production in 2023, second
half production for the company could be down 13% from first
half
    ** Two of 13 analysts rate the stock "buy", six "hold" and
five "sell" or lower; their median PT is A$15.70 – Refinitiv
data
    ** As of last close, stock had risen 14.1% this year


($1 = 1.5305 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))