UPDATE: DA Davidson Upgrades Sims Metal Management to Buy on Share Appreciation Potential

DA Davidson raised its rating on Sims Metal Management

from Neutral to Buy on a potential rebound in shares as market is seen bottoming. DA Davidson said, "Sims' shares have drifted lower in recent weeks (now modestly above tangible book value of $8.59 per share). Given the share decline and prospects for improved market conditions in the coming months, we are more confident in near-term share appreciation potential. Ferrous scrap tends to be a leading economic indicator. We do not expect robust near-term economic improvement, although these shares should see an earlier recovery as the company leverages eventual improved demand for scrap from current low levels. The strength of Sims' balance sheet should also continue to allow the company to further consolidate the scrap industry and retain its leading position." Sims Metal Management closed at $9.29 on Thursday.