Schnitzer Steel Keeps Falling as Morgan Stanley Reiterates Underweight, Slashes Price Target
Analysts at Morgan Stanley (NYSE: MS) reiterated their Underweight rating on shares of Schnitzer Steel (NASDAQ: SCHN) this morning and slashed their price target on the stock. They wrote that "the accelerating growth rate of emerging market scrap supply, particularly in China, will push Asian scrap prices closer to parity with US scrap prices, in our view. We think this shift will structurally pressure SCHN margins."
The firm cut its price target on the stock to $28.00 from $50.00. While there was a big buyer of the stock right at the open on Monday, those gains immediately evaporated. At last check, SCHN shares were trading down 4.75% to $24.46. This compares to an opening price of $25.81 and a high of $26.51, which was hit within the first couple of minutes of trade.
Schnitzer Steel Industries, Inc. (SSI) is a recycler of ferrous and nonferrous scrap metal. The Company is a recycler of used and salvaged vehicles and a manufacturer of finished steel products.
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