Sims Metal Management Ltd Downgraded by DA Davidson to Neutral (SMS)
Sims Metal Management Ltd (NYSE:SMS) was downgraded by equities research analysts at DA Davidson from a “buy” rating to a “neutral” rating in a research note issued to investors on Monday, TheFlyOnTheWall.com reports.
The analysts wrote, “We are lowering our 2H forecast to A$0.02 per share from A$0.33 previously. Ferrous scrap markets remained challenging during the period, with weaker U.S. export volumes, declining prices and continued tight supply conditions. We are now forecasting more significant margin compression for Sims reflecting these conditions. We are also lowering our fiscal 2014 forecasts as detailed below and in the attached model. In addition to market pressures, Sims previously announced a series of additional charges amounting to ~A$115 million or an estimated ~$0.35 per share) which will impact results. These charges include inventory write-downs, impairment charges and other costs associated with restructuring of its U.K. operations.”
Sims Metal Management Ltd (NYSE:SMS) traded down 0.61% during mid-day trading on Monday, hitting $8.16. 6,348 shares of the company’s stock traded hands. Sims Metal Management Ltd has a one year low of $7.25 and a one year high of $11.60. The stock’s 50-day moving average is $8.05 and its 200-day moving average is $9.43. The company’s market cap is $1.667 billion.
Sims Metal Management Limited is a metals recycling company. Its core businesses include ferrous secondary recycling, which comprises the collection, processing and trading of iron and steel secondary raw material; non-ferrous secondary recycling, which comprises the collection, processing and trading of other metal alloys and residues; recycling solutions, which comprises the provision of solutions for the disposal of post-consumer electronic products, and secondary processing, which comprises a process involving the melting, refining and ingoting of certain non-ferrous metals; the reclamation and reprocessing of plastics, and landfill gas renewable energy.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.