A tight supply chain and the Russia/Ukraine conflict have seen global pig iron prices rise around 20% in the last month.
For BlueScope Steel, UBS lowers its FY22 and FY23 EPS forecasts by -4% and -7%, on higher input costs causing falls across both
the North Star and Australian Steel products (ASP) spreads.
However, the broker’s longer-term EPS forecasts lift marginally on higher long-term forecasts for hot rolled coil products. The Buy rating and $25.75 target are unchanged.
Sector: Materials.
Target price is $25.75.Current Price is $19.16. Difference: $6.59 – (brackets indicate current price is over target). If BSL meets the UBS target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
