BSL – Macquarie rates the stock as Outperform

Macquarie upgrades earnings estimates in the second half to $919.4m. The broker reviews its investment thesis, finding favourable market dynamics are offering demand and pricing support.

A consolidating global steel industry, high utilisation and strong demand have combined to underpin a rally in steel prices.

While acknowledging the risks associated with the rollover of steel prices/spreads, the broker envisages strong earnings momentum can continue. Outperform retained. Target is raised to $23.50 from $21.65.

Sector: Materials.

 

Target price is $23.50.Current Price is $20.27. Difference: $3.23 – (brackets indicate current price is over target). If BSL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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