** 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
(Reporting by Nichiket Sunil in Bengaluru)
((Nichiket.Sunil@thomsonreuters.com;))
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