Market Overview

UPDATE: Bank of America Cuts PO to $38 on Schnitzer Steel; Guidance Signals Challenges

Related SCHN
Earnings Scheduled For January 5, 2017
11 Stocks That Rallied For Three Days On Increasing Volume, No News

Bank of America lowers its price objective on Schnitzer Steel (NASDAQ: 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.

Latest Ratings for SCHN

Nov 2015Morgan StanleyUpgradesUnderweightEqual-Weight
Sep 2015JefferiesMaintainsBuy
Jul 2015KeyBancDowngradesOverweight

View More Analyst Ratings for SCHN
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Price Target Reiteration Pre-Market Outlook Analyst Ratings


Related Articles (SCHN)

View Comments and Join the Discussion!