Morgan Stanley bullish on Australia's BlueScope after outlook upgrade

BSL

19/05/2022 07:05

** Brokerage Morgan Stanley says steel producer BlueScope
Steel's  BSL.AX  recent outlook upgrade reflects further
leverage to elevated steel prices 
    ** BlueScope on Wednesday raised its H2 EBIT forecast to a
range of A$1.38 bln ($965.31 mln) to A$1.48 bln from A$1.2 bln
to A$1.35 bln previously  urn:newsml:reuters.com:*:nASX5y2Jcl  urn:newsml:reuters.com:*:nL3N2XA0BS 
    ** Brokerage raises its EBIT forecast by 7% to A$3.7 billion
for FY22 
    ** BSL is a "quality steel business with good management" -
Morgan Stanley
    ** Sees Australian construction activity, one of the factors
affecting steel demand, to remain robust in FY22 AND FY23,
retains "overweight" rating 
    ** BSL down 2% at A$17.84; MS has a PT of A$25.00 on the
stock
    ** Stock down 12.9% YTD, as of last close
    
    ($1 = 1.4296 Australian dollars)
    

 (Reporting by Harshita Swaminathan in Bengaluru)
 ((Harshita.Swaminathan@thomsonreuters.com))