The company has guided to May quarter operating earnings (EBIT) of US$28-29m from its auto and metals recycling segment.
The sequentially stronger performance reflects the benefits from higher ferrous and non-ferrous volumes, seasonally improved supply flows and retail sales.
Credit Suisse expects the June quarter should benefit from a material improvement in export market prices relative to US domestic prices.
Outperform rating and $12.90 target maintained.
Sector: Materials.
Target price is $12.90.Current Price is $10.12. Difference: $2.78 – (brackets indicate current price is over target). If SGM meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
