Morgan Stanley raises PT on Australia's BlueScope Steel on strong US prices

BSL

05/02/2024 03:39

** Shares of Australia's BlueScope Steel  BSL.AX  fall as
much as 1.8% to A$22.95, their biggest intraday percentage loss
since Jan 18
    ** BlueScope stock hits its lowest level since Jan 25, and
is on track for a third straight daily loss
    ** Analysts at Morgan Stanley say strong U.S. steel spreads
- the price difference between two futures contracts with
different expiration dates- have offset historically low Asian
spreads so far in the second half of FY24
    ** Brokerage raises its price target on BlueScope stock to
A$21 from A$18
    ** However, Morgan Stanley flags that U.S. prices may have
hit an inflection point
    ** We expect share price weakness if (U.S. steel price)
declines are meaningful - Morgan Stanley 
    ** BSL stock down 0.2% YTD, as of last close



 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))