UBS positive over BlueScope Steel on product pricing, U.S. acquisition benefits

BSL

22/11/2022 23:23

** UBS sees value in Australian steelmaker BlueScope Steel
 BSL.AX  on its order pipeline, product pricing and well-placed
position in U.S. after acquisitions
    ** BSL shares up 1.9% to A$17.25 as of 2315 GMT, their
highest level in over a week
    ** Brokerage continues to see "upside" to the midpoint of
BSL's 1H23 EBIT guidance of A$800 mln ($531.76 mln) to A$900 mln
    ** Despite subdued macroeconomic backdrop, UBS sees value in
BSL on a one-year basis on robust pricing of its steel brand,
Colorbond, work pipeline, Colorbond gaining domestic market
share, and recent acquisitions in the United States
    ** Maintains "buy" rating and a price target of A$20.50
    ** Brokerage continues to expect net earnings in fiscal 2024
to dip to their lowest level since fiscal 2020, before advancing
consistently till fiscal 2027
    ** 10/13 analysts rate the stock "buy" or higher and three
"hold"; their median PT is A$20.00 – Refinitiv data
    ** BSL down 19% this year, as of last close, significantly
outpacing a 3.5% decline in the ASX 200 benchmark index  .AXJO  
($1 = 1.5044 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))