Loading...
Loading...
Bank of America lowers its price objective on Schnitzer Steel
SCHN from $46 to $38 and reiterates its Neutral rating on shares.
Bank of America comments, "SCHN issued on Thursday a market outlook for its May quarter highlighting soft demand coupled with higher costs that promise to greatly impact FQ3 earnings. Mgmt expected operating income of $8-11/t in its main recycling operations, for the lowest margin since 2009 and far from its stated target of $30-40. It said tight raw material supplies and higher freight charges drove costs up, offsetting any
benefit from a small rise in prices. Our sources have indicated scrap prices are under pressure, with export demand weaker and prices up to $20-30/t lower m/m."
SCHN closed at $32.34 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in