SCHN - Schnitzer Steel Industries: Moderate Sell Initiated At $22.96 Amid Headwinds In Steel Industry
Authors: Elmore Wallace, Iliya Krutko and Stephen Crisp
Investment Summary
We issue a moderate SELL recommendation with a one-year target price of $22.96 representing 3.07 percent downside potential as of SCHN’s May 3rd, 2019 closing price of $23.69. This recommendation rests on the influence current industry trends and forecasts will have upon SCHN financial performance going forward and primarily include: A) The decline in the price of steel, and B) A decline in industrial production which will pigeon hold SCHN’s ability to grow.
- Price of Steel: SCHN’s sales growth since FY16 has reflected