UPDATE: DA Davidson Upgrades Schnitzer Steel Industries; Shares Lower on Expectations

On a note from June 1, DA Davidson raises its rating on Schnitzer Steel Industries SCHN from Underperform to Neutral. Price target is at $26 a share. DA Davidson comments, "Schnitzer should report earnings in late June/ early July. The outlook provided in May should set investor expectations for Q3. With ferrous scrap prices under pressure into June, we are not anticipating a particularly encouraging short-term outlook from the company. However, following the sharp decline in the shares over the last several months, along with transparency from Schnitzer and industry peers regarding deteriorating market conditions and weakening financials, we believe investor expectations are significantly lowered." SCHN closed at $25.68 on Friday.