Sims has sold a 50% stake in LMS Energy, the landfill gas operator, according to RBC Capital Markets.

This strategic divestment is aimed at allowing the company to focus on its core metals business.

The interest in LMS was sold for A$272 million to Pacific 2023 Holdco A Pty, a company owned by funds managed by Pacific Equity Partners.

The incoming A$272 million will potentially provide an opportunity for Sims to deploy capital elsewhere, facilitating its capital recycling strategy.

RBC Capital rates Sims as ‘outperform’ with a price target of A$16.50.

Out of 13 analysts, 2 rate Sims as ‘buy’ or higher, 7 rate it as ‘hold’, and 4 rate it as ‘sell’ or lower, presenting a median price target of A$15.

The company’s stock has appreciated 5.4% this year, going by the numbers till the last closure.

Sims is a metal recycling company that specializes in ferrous and non-ferrous recycling, and provides solutions for metal and electronics recycling.