Schnitzer Steel cut at KeyBanc on bearish trends in ferrous scrap, aluminum (NASDAQ:SCHN)

Schnitzer Steel cut at KeyBanc on bearish trends in ferrous scrap, aluminum (NASDAQ:SCHN)

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Schnitzer Steel (NASDAQ:SCHN) ticks lower as KeyBanc downgrades shares to Sector Weight from Overweight, saying global ferrous scrap and aluminum trends have grown surprisingly bearish.

“Ferrous scrap and aluminum pricing strength fizzled/reset a lot sooner than we anticipated, while U.S. scrap export demand has become more subdued, each creating downside risks to estimates following the May quarter,” analyst Philip Gibbs writes.

KeyBanc says it favors “relative value names” in the sector with “reasonable valuation,” including Commercial Metals (CMC), Reliance Steel (RS) and Timkensteel (TMST), all rated Overweight with respective price targets of $50, $215 and $27.

Schnitzer Steel (SCHN) has just posted record highs in terms of revenues and profits, and has made significant efforts to pay down its debt, Anthony Mcneila writes in a bullish analysis posted on Seeking Alpha.

Originally Posted on: https://seekingalpha.com/news/3841114-schnitzer-steel-cut-at-keybanc-on-bearish-trends-in-ferrous-scrap-aluminum?source=feed_tag_commodities
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