Morningstar initiates coverage on Australia's Sims with 'High Uncertainty' rating

Morningstar initiates coverage on the world's largest publicly traded metals and electronics recycler Sims SGM.AX

Investment research firm sets Price Target at A$15.80, rates shares three stars out of five

"We assign Sims no-moat, High Uncertainty, and Standard Capital Allocation ratings" - Morningstar

Expect higher scrap prices and better gross margins for its North American segment, reflecting increasing demand for domestic steel and reduced competition from imported steel

U.S. duty rate on steel, aluminum has risen to 25%

Morningstar however, expects tariffs to diminish at the end of the current administration, resulting in a normalization of scrap prices and margins

1 of 12 analysts rate the stock "buy", 8 "hold" and 3 "sell" or lower; their median PT is A$14.65 – according to data compiled by LSEG

Shares flat at A$13.8 as of last close