KeyBanc Starts Schnitzer Steel (SCHN) at Hold; Leading U.S. Scraper, But Near-Term Headwinds
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Price: $26.41 +2.48%
Rating Summary:
2 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 41 | New: 13
Rating Summary:
2 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 41 | New: 13
Trade SCHN Now!
KeyBanc initiates coverage on Schnitzer Steel (NASDAQ: SCHN) with a Hold.
KeyBanc analyst said, "We view Schnitzer as a high-quality metallics company and we are positively disposed to SCHN's geographic exposure, strong balance sheet and cash flow persistence, recent increase to the dividend (1.9% annual yield from 0.20%), M&A growth strategy and attractive deep valuation metrics....We view these positives as well balanced against a lack of near-term catalysts, including weak demand visibility to key U.S. scrap export destinations (Asia and Europe), below normalized scrap spread predictability given a subdued pricing environment for steelmaking metallics and relatively tight feedstock, and recent weakness in the euro vs. the U.S. dollar. The combination of these fundamentals shade EPS risk more to the downside than the reverse in the near term, in our opinion."
For an analyst ratings summary and ratings history on Schnitzer Steel click here. For more ratings news on Schnitzer Steel click here.
Shares of Schnitzer Steel closed at $39.87 yesterday, with a 52 week range of $32.82-$62.59.
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KeyBanc analyst said, "We view Schnitzer as a high-quality metallics company and we are positively disposed to SCHN's geographic exposure, strong balance sheet and cash flow persistence, recent increase to the dividend (1.9% annual yield from 0.20%), M&A growth strategy and attractive deep valuation metrics....We view these positives as well balanced against a lack of near-term catalysts, including weak demand visibility to key U.S. scrap export destinations (Asia and Europe), below normalized scrap spread predictability given a subdued pricing environment for steelmaking metallics and relatively tight feedstock, and recent weakness in the euro vs. the U.S. dollar. The combination of these fundamentals shade EPS risk more to the downside than the reverse in the near term, in our opinion."
For an analyst ratings summary and ratings history on Schnitzer Steel click here. For more ratings news on Schnitzer Steel click here.
Shares of Schnitzer Steel closed at $39.87 yesterday, with a 52 week range of $32.82-$62.59.
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