Analysts at Jefferies downgraded Schnitzer Steel (
) from Buy to Hold on Tuesday, issuing some bearish commentary on
the steel industry.
"With U.S. steel prices poised for a (likely material)
pull back and following recent expansion in valuations, we
recommend investors reduce exposure to steel equities and have
downgraded 4 stocks (STLD, WOR, RS, and SCHN) where we see
risk-reward balanced near term," commented the Jefferies analyst.
Jefferies is maintaining Buy ratings on what it called "the most
defensive and undervalues stocks" within the group, including
Olympic Steel (
) and Nucor (
Jefferies also lowered its price target for SCHN from $34 to
$31. Shares of Schnitzer closed Monday at $30.14, suggesting
limited upside from current valuations.
The Bottom Line
Shares of Schnitzer Steel (
) have a 2.49% dividend yield, based on last night's closing stock
price of $30.14. The stock has technical support in the $25 price
area. If the shares can firm up, we see overhead resistance around
the $32-$35 price levels.
Schnitzer Steel (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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