Jefferies Initiating Coverage On SCHN

Jefferies is initiating coverage on Schnitzer Steel SCHN with a Buy rating and price target set at $70. According to Jefferies, “We're initiating coverage of SCHN with a BUY rating and $70 price target (7.5x 2012E EBITDA). With continued growth from acquisitions and benefits from the company's investments in recycling technology we see the likelihood for earnings power to exceed expectations in the coming years as scrap flows recover and ferrous margins normalize.” SCHN closed yesterday at $58.57.