Credit Suisse increases its FY21-22 operating income forecasts for BlueScope Steel by 7-8%. The revised second-half operating income estimate of $913m is also above BlueScope Steel’s guidance.
The broker’s forecast increase is based on expectations of higher North Star and Australian steel spreads, offset partially by lower margins in buildings products and buildings divisions. Outperform retained. Target rises to $22.50 from $20.
Target price is $22.50.Current Price is $20.94. Difference: $1.56 – (brackets indicate current price is over target). If BSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).