Schnitzer Steel Downgraded To Hold At Jefferies; Cites “Material Pull Back” In Steel Stocks (SCHN)


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Analysts at Jefferies downgraded Schnitzer Steel ( SCHN ) 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 ( ZEUS ) and Nucor ( NUE ).

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 ( SCHN ) 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 ( SCHN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com



This article appears in: Investing , Stocks
Referenced Symbols: NUE , RS , SCHN , STLD , ZEUS


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