The balance sheet is robust and cash generation strong so Credit Suisse expects the buyback of $150m per half will be renewed along with a unchanged 6c per share half-year dividend. The company will report results on August 13.
Exceptionally strong US steel spreads are likely to be the principal driver of earnings growth, the broker suggests. Outperform rating maintained. Target is raised to $19.00 from $16.90.
Target price is $19.00.Current Price is $18.11. Difference: $0.89 – (brackets indicate current price is over target). If BSL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).