DA Davidson Downgrades Metalico (MEA) to Neutral; Long-Term Potential but Near-Term Haze

DA Davidson downgraded Metalico (NYSE: MEA) from Buy to Neutral, price target lowered from $5.50 to $4.25.

Analyst, Brent Thielman, said, "Should ferrous scrap prices see a meaningful rebound, we would expect to see a benefit to earnings that could make these shares more appealing at current levels. However, with limited signs of improvement in market conditions/pricing, and valuation multiples more comparable with industry peers, we are reducing our rating."

FY12 EPS estimate cut from $0.46 to $0.26 and FY13 from $0.60 to $0.38.

For an analyst ratings summary and ratings history on Metalico click here. For more ratings news on Metalico click here.

Shares of Metalico closed at $3.92 yesterday.

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