Citi trims FY24 EBIT on Australia's Sims; maintains buy rating

Sims

07/05/2024 20:13

** Analysts at Citi reduce FY24 EBIT for Australia's Sims
 SGM.AX  by 78% to $22 mln on weak earnings outlook
    ** Metal recycler expected its underlying EBIT in H2 to be
marginally lower than H1 
    ** Brokerage also decreases FY25 EBIT by 35%; sees a slower
recovery in margins & volumes for co
    ** Sees FY26 EBIT up 4% due to our stronger USD forecasts -
Citi
    ** However, brokerage maintains "buy" rating at price target
of A$13.50/share
    ** Three of 13 analysts rate the stock "buy" or higher, four
"hold" and six "sell" or lower; their median PT is A$12.74 –
LSEG data
    ** Stock down 28.9% YTD, as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))