SGM – Merrill Lynch rates the stock as Neutral, Medium Risk

Analysts agree with the market that the stock deserves to be re-rated on the basis of Recycling Solutions, but not when it comes to the scrap cycle. Merrill Lynch is worried about scrap in the second half of 2007. It's not that the outlook for scrap isn't strong, it's that the costs are increasing as well, the analysts argue. They foresee the stock will trade in a $25-31 range for six months or so.

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