UPDATE: Bank of America Upgrades Schnitzer Steel to Neutral on Limited Downside

Bank of America raised its rating on Schnitzer Steel

from Underperform to Neutral and reiterated its previous price objective of $28. Bank of America commented, "We upgrading SCHN to Neutral after Tuesday's FQ1E (Nov end) guidance was worse than expected, as we now see more limited downside to the thesis. Positives we note include: 1) incrementally better global sentiment; 2) a breaking point for FCF driving more cost cutting; 3) lower cost scrap procurement as NUE ramps up its DRI scrap substitute. Disappointing FQ1 results are likely a trough as mkt uncertainty has hurt demand, but SCHN has seen conditions recover." Schnitzer Steel closed at $28.08 on Monday.