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.
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).