Steel producer Schnitzer Steel Industries, Inc. (
) on Friday caught some negative commentary from analysts at Auriga
The firm maintained its "Hold" rating on SCHN but slashed its
price target from $44 to $36. That new target suggests a small
upside to the stock's Thursday closing price of $32.34.
An Auriga analyst commented, "Schnitzer Steel (
) announced its market outlook for the fiscal 3Q12 quarter (May),
which we believe translates to a sequential earnings decline.
Consequently, we are drastically reducing our fiscal 3Q12 EPS
estimate, which is slightly below consensus, from $0.70 to $0.25.
We are also reducing our full-year fiscal 2012 and 2013 EPS
estimates from $2.25 and $4.40 to $1.30 and $3.75, respectively.
The revisions are being driven by ongoing top-line headwinds from
the current economic environment, which is being compounded by
increases in costs for raw materials."
Schnitzer Steel shares plummeted $3.53, or -11%, in morning
The Bottom Line
Shares of Schnitzer Steel (
) have a 2.32% dividend yield, based on last night's closing stock
price of $32.34. The stock has technical support in the $25 price
area. If the shares can firm up, we see overhead resistance around
the $34-$36 price levels.
Schnitzer Steel Industries, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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