Morningstar initiates coverage on Australia's Sims with 'High Uncertainty' rating

Sims

13/03/2025 20:13

** Morningstar initiates coverage on the world's largest publicly traded metals and electronics recycler Sims SGM.AX

** Investment research firm sets Price Target at A$15.80, rates shares three stars out of five

** "We assign Sims no-moat, High Uncertainty, and Standard Capital Allocation ratings" - Morningstar

** Expect higher scrap prices and better gross margins for its North American segment, reflecting increasing demand for domestic steel and reduced competition from imported steel

** U.S. duty rate on steel, aluminum has risen to 25%

** Morningstar however, expects tariffs to diminish at the end of the current administration, resulting in a normalization of scrap prices and margins

** 1 of 12 analysts rate the stock "buy", 8 "hold" and 3 "sell" or lower; their median PT is A$14.65 – according to data compiled by LSEG

** Shares flat at A$13.8 as of last close

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com;))