Goldman Sachs Downgrades Schnitzer Steel (SCHN) to Sell

September 23, 2019 4:45 AM EDT
Get Alerts SCHN Hot Sheet
Price: $41.32 +2.15%

Rating Summary:
    4 Buy, 6 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 13 | New: 41
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Goldman Sachs analyst Matthew Korn downgraded Schnitzer Steel (NASDAQ: SCHN) from Neutral to Sell with a price target of $23.00 (from $27.00).

The analyst comments "Schnitzer Steel has done a good job, in our opinion, at diversifying its geographical market, upgrading the quality of its scrap offerings, and improving operational efficiency. These key strategic initiatives have become even more important over the last two years as China continues to evolve in its role as a key customer in the global scrap markets (i.e., adding tariffs, quality/environmental thresholds, and outright bans on certain forms of scrap). Notably, the fiscal YTD 24% improvement in per-ton margins in the Automotive and Metals Recycling division (AMR) has been impressive through a fairly mediocre metals pricing environment. However, scrap markets are now showing signs of further weakening, and we are concerned that these deteriorating conditions add risk to SCHN’s earnings profile."

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 $23.53 yesterday.

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