UPDATE: D.A. Davidson Downgrades Schnitzer Steel Industries to Neutral, Lowers PT on Clouded Recovery Prospects

In a report published Monday, D.A. Davidson analyst Brent Thielman downgraded the rating on

from Buy to Neutral, and lowered the price target from $34.00 to $25.00. In the report, D.A. Davidson noted, “An uphill battle as macroeconomic trends cloud MRB recovery prospects. While we have long believed inherent earnings power at Schnitzer has not been fully appreciated at current (and even recently higher) price levels, a broader recovery in profit margins at its core Metals Recycling Business (MRB) has become increasingly clouded amidst broader international economic softness and rapidly declining oil prices.” Schnitzer Steel Industries closed on Friday at $22.01.