MS says Asx-listed Sims not immune to softer steel markets, cuts PT

Sims

07/11/2022 04:41

** Morgan Stanley says metals and electronics recycler Sims
Ltd  SGM.AX  will not be immune to softer steel markets and a
slower global growth outlook
    ** MS cuts price target to A$13.00 from A$19.00, maintains
rating at 'equal weight' 
    ** MS cuts FY23 adjusted NPAT by 26% to A$236 mln ($151.68
mln)
    **  Against the backdrop of a slower global growth
environment, we think that a rebound in key scrap prices is
unlikely - MS
    ** However, MS sees SGM as balanced between attractive
longer-term thematics and challenging short-term conditions
    ** SGM shares jumped as much as 4.2% to A$12.685, gaining
the most since Oct. 24 
    ** One of 12 analysts rates the stock "buy" or higher, eight
"hold", and three "sell" or lower; their median PT is A$14.4 –
Refinitiv Eikon data 
    ** Stock has fallen 24.2% so far this year, as of last close
($1 = 1.5559 Australian dollars)
 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))