BSL - UBS rates the stock as Buy
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BlueScope has upgraded second half earnings guidance as expected, given rising steel spreads in the US. But the 12% increase only serves to bring guidance in line with consensus forecasts, the broker notes.
The company did not provide a new spread estimate but the broker notes if current spot prices were to hold for another six weeks, and accounting for a typical one month lag, this would imply further upside to guidance. Meanwhile, ASEAN building products are performing poorly but this is election-related and should prove temporary.
Buy retained, target rises to $20.50 from $18.75.
Target price is $20.50.Current Price is $17.78. Difference: $2.72 - (brackets indicate current price is over target). If BSL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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