FY20 ended on a strong note for BlueScope Steel, observes UBS, but is not enough to alleviate the broker’s concerns regarding steel prices which are at a four-year low.
Blast furnaces have restarted despite weak prices and demand and the broker fears this could keep the market in surplus for longer.
Neutral rating is maintained. Target is raised to $12.30 from $11.80.
Sector: Materials.
Target price is $12.30.Current Price is $12.35. Difference: ($0.05) – (brackets indicate current price is over target). If BSL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
