UPDATE: Jefferies Reduces PT to $34 on Schnitzer Steel Industries on Demand Outlook and Price Headwinds

Jefferies maintains its Hold rating on Schnitzer Steel Industries

and lowers its price target from $53 to $34. Jefferies notes, "Following sharp downward moves in steel/scrap prices and given ongoing risks to global growth related to the European debt crisis and potentially material downside implications for steel markets, we've lowered our steel price/demand forecasts and have reduced steel earnings estimates and target prices. Though steel equity valuations have already declined substantially, we expect trends to remain weak and maintain our preference for more defensive models within the group." SCHN closed at $24.41 on Friday.