Macquarie upgrades PT on Australia's Sims after LMS Energy sale

Sims

21/09/2023 06:09

** Brokerage Macquarie lifts price target on Sims  SGM.AX 
to A$14.20 from A$13.30
    ** Says the sale of LMS provides investment capital for
further metal business consolidation
    ** Metal recycling company SGM announced sale of its 50%
share in LMS Energy to Pacific Equity Partners for A$272.1
million ($174.28 million)
    ** At an implied 18.8x trailing EV/EBIT, it is a solid
valuation, in line with peers - brokerage 
    ** SGM shares are down as much as 2.8% to A$13.64, their
biggest pct loss since Sept. 12
    ** 2 analysts rate the stock "buy", 7 "hold" and 4 "sell";
their median PT is A$14.55 – LSEG data
    ** Stock up 7.2% this year, as of last close


($1 = 1.5613 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))