Sims (ASX:SGM) is finding it difficult to reflect the recent DDR4 price rally in its share price due to a lack of clarity, Jefferies said in a Tuesday note.

The company's management has indicated that more detailed guidance will be provided in March 2026, according to the note.

Jefferies said its forecasts have been materially upgraded, as DDR4 prices have averaged approximately 270% higher in the fiscal second half to date compared with the fiscal first half.

However, Jefferies considers it unlikely that the higher earnings outlook will be reflected in the share price until further guidance is provided.

Jefferies kept an underperform rating on Sims and increased its price target to AU$17.40 from AU$13.50.