Jefferies, Morningstar 'optimistic' on Australia's Sims after FY26 earnings outlook

Sims

18/03/2026 19:22

** Jefferies says Sims's SGM.AX trading update 'well ahead' of consensus, Morningstar follows suit

** On Wednesday, the scrap recycler 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 EBIT estimate, Morningstar lifts underlying EBIT estimate of co

** 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 the 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 15% YTD, including the day's moves

 (Reporting by Aamir Sheik Khalid in Bengaluru)

 ((Aamir.SheikKhalid@thomsonreuters.com))