Radius Recycling upgraded to Neutral at Seaport Research on valuation

As previously reported, Seaport Research upgraded Radius Recycling to Neutral from Sell and removed the firm’s prior price target of $17. The firm anticipates management will provide fiscal Q3 guidance in the near term that will highlight incremental quarter-over-quarter pressure, with some partially offsetting factors. Several fundamental headwinds previously detailed in the firm’s downgrade will likely persist over the medium term, the firm added. Radius should gain some fixed cost leverage in Q3 on improved volumes and benefit from higher nonferrous average selling prices, though the firm believes consensus remains “overly optimistic” about the second half.