SGM – Credit Suisse rates the stock as Downgrade to Neutral from Outperform

Credit Suisse reviews the earnings drivers and revises down earnings forecasts for the second half of FY20.

A more conservative outlook is also adopted for FY21/22.

The broker’s forecasts are based on weakness ins scrap prices and soft US peer results.

The pricing and volume backdrop needs to turn around to signal a buying opportunity.

Hence, Credit Suisse downgrades to Neutral from Outperform. Target is reduced to $7.95 from $9.10.

Sector: Materials.

Target price is $7.95.Current Price is $7.61. Difference: $0.34 – (brackets indicate current price is over target). If SGM meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

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