Wednesday Whispers: BSL, BLD, APE
A fair bit of news around the ASX on Wednesday, and here’s all the latest from steelmaking giant BlueScope, Kerry Stokes-controlled Boral and local automative retailer Eagers.
Read MoreTag: BSL
BlueScope Dips Another Toe in US Steel Market
BlueScope has made its second major US acquisition in six months to help bolster its growing presence in the market, especially in one of its specialities, coated steel products.
Read MoreBSL – UBS rates the stock as Buy
The Buy rating and $25.75 target are unchanged.
Read MoreGlobal Steel Boom Helps BlueScope to Record
2021’s global steel boom powered Australian/US producer and exporter, BlueScope Steel to its best ever six months and the company says it is expecting this trend to continue into 2022.
Read MoreBSL – Citi rates the stock as Buy
Buy retained. But Citi has lowered its target PE multiple to 17x from 20x, which leads to a target price decrease to $25.50 from $27.50.
Read MoreCorporate Chit-Chat: BSL; SHL
Plenty of news from the AGMs of steelmaker BlueScope and pathology giant Sonic Healthcare, with guidance and trading updates provided at each. Here are the salient points.
Read MoreImproved Guidance for BlueScope on Steel Surge
The steel business continues to buoy the earnings of BlueScope, with higher demand on both sides of the Pacific – Australia and the US – leading to an increase in the company’s December half forecast.
Read MoreBSL – Credit Suisse rates the stock as Neutral
Target rises to $26.00 from $25.20, Neutral retained.
Read MoreNothing Blue and Plenty of Scope for More
BlueScope Steel saw a surge in earnings in the year to June which enabled the country’s biggest steelmaker to more than triple its final dividend, announce a special payout, and reveal a $500m buyback.
Read MoreBlue Ribbon Result for BlueScope Steel
As expected, steelmaker BlueScope has smashed its second half and June 30 full year earnings guidance thanks to the global boom in demand for steel – especially in the US.
Read MoreBlueScope Flourishing on Steel Demand
18 months after warning high iron ore and coking coal prices would damage earnings, BlueScope is more profitable than it ever has been despite ore prices surging even further.
Read MoreBSL – Credit Suisse rates the stock as Outperform
Outperform retained. Target rises to $22.50 from $20.
Read MoreBSL – Macquarie rates the stock as Outperform
Outperform retained. Target is raised to $23.50 from $21.65.
Read MoreBSL – UBS rates the stock as Neutral
BlueScope Steel pre-reported group operating income of $530m. UBS retains a Neutral rating and reduces the target to $18.04 from $18.25.
Read MoreBlueScope Shows Steely Resolve
Surging Australian demand, aided by solid sales into the US residential construction sector, saw BlueScope’s highest Australian steel dispatches in a decade and a 78% jump in profit.
Read MoreBlueScope On Top Of The Housing Boom
Sales from the mills of BlueScope Steel are going gangbusters, auguring well for the outlook over FY21. Are there any clouds on the horizon?
Read MoreOur vacations might not be the only thing ‘staying local’ for a while
Australian investors are known to be very parochial, and have historically reflected this attitude with a home bias – possibly because of the lure of familiarity with companies, franking credits and the currency hedge (most spend in Australian dollars).
Read MoreBluescope Strengthens Profit Forecast Again
Shares in steelmaker, BlueScope leapt by more than 7% yesterday after a second earnings upgrade in a month. The update, released ahead of the company’s annual meeting, took investors by surprise coming so soon after the very positive lift in projected earnings in a month.
Read MoreNews Shorts: BlueScope Upgrades Earnings, Link Rejects Takeover Bid
Steelmaker BlueScope Steel set the market on fire on Friday with a sharp upgrade to first-half earnings. Meanwhile, financial services records group, Link has rejected the $2.8 billion takeover private equity bid, claiming it materially undervalued the company.
Read MoreQBE CEO Exits, Ex-BlueScope Exec Pleads Guilty To Obstructing Cartel Probe
QBE Group chief executive Pat Regan will leave the insurer after an external investigation into workplace communications that the board said did not meet the group’s code of ethics and conduct. Meanwhile, former senior BlueScope Steel executive Jason Ellis has pleaded guilty in Sydney’s court to one charge of obstructing a cartel investigation.
Read MoreBSL – UBS rates the stock as Neutral
FY20 ended on a strong note for BlueScope Steel, observes UBS, but is not enough to alleviate the broker’s concerns regarding steel prices which are at a four-year low.
Read MoreBluescope Holds Payout As Profit Plummets 91%
Australia’s largest steelmaker, BlueScope, has matched a warning of lower earnings for the year to June with news yesterday that statutory earnings fell a massive 91%. The fall came amid weak profits for steel products in Australia, Asia, the US, and New Zealand.
Read MoreNZ Impairments Add To Virus Hit At BlueScope Steel
BlueScope Steel is looking at a double hit to 2019-20 profit from the COVID-19 pandemic and a write-down of the value of its New Zealand Steel subsidiary.
Read MoreBSL – UBS rates the stock as Neutral
UBS updates modeling following a trough in earnings that appears shallower than previously expected. The broker now assesses the risk/reward is balanced and retains a Neutral rating.
Read MoreBSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreBSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreVirus Havoc: Myer Slumps, Nine & Bluescope Drop Guidance, Afterpay Under Siege
Shares in troubled department store Myer plunged by more the 44% yesterday for no apparent reason.
Read MoreBSL – Citi rates the stock as Buy
On Citi’s assessment, BlueScope Steel released a better-than-expected interim performance, but also provided soft guidance for H2. Coronavirus uncertainty rules. The analysts believe market sentiment will likely remain weak for the time being.
Read More“Heavily Impacted”: BlueScope Warns On Virus Fallout
Bluescope Steel confirmed yesterday its lowered guidance for the December half and for 2019-20 while also warning that its China operations are likely to be “heavily impacted” by disruptions stemming from the coronavirus in February and March.
Read MoreBSL – UBS rates the stock as Sell
BlueScope Steel has set a bold target of reducing its carbon intensity by -1% per annum by 2030, UBS notes. To achieve this, every site has a plan and the majority of the reduction will be led by Port Kembla. Port Kembla is expected to use cleaner coal and higher-grade iron ore.
Read MoreBSL – Credit Suisse rates the stock as Outperform
BlueScope Steel has confirmed first half guidance for earnings (EBIT) around $275m. Earnings drivers, including US and Asian steel spreads, are in line with assumptions provided in the original guidance.
Read More“Modest Recovery”: BlueScope Shares Higher Despite Steel Price Headwinds
Shares in BlueScope Steel rose yesterday when the company told the AGM that it was still expecting a sharp fall in first-half earnings.
Read MoreInvestors Sceptical Over BlueScope Strategy
BlueScope Steel has changed tack and will now take on more debt to help finance its US expansion – that’s a move that will see the company no longer target cash retention and instead see a gearing up of its balance sheet.
Read MoreBSL – Credit Suisse rates the stock as Outperform
The company’s second-half guidance is reduced by around -10% to “approaching $500m”. Credit Suisse suggests the market is looking at just how low guidance can go for FY20.
Read MoreBlueScope Feels The Flipside Of The Trade War
BlueScope Steel’s forthcoming 2018-19 results have been given a small whacking by the combination of Donald Trump’s steel trade/tariff war causing global steel prices to soften and the rise in global iron ore prices.
Read MoreBSL – Credit Suisse rates the stock as Outperform
Credit Suisse US steel analysts have reduced hot rolled coil (HRC) and steel spread assumptions citing planned capacity additions, declining US steel tariff protection and the likely rise in scrap.
Read MoreBSL – Credit Suisse rates the stock as Outperform
Spreads in US spot hot-rolled coil versus scrap continue to weaken, declining to US$309/t, which Credit Suisse notes is below the company’s assumed US$394/t for the June half.
Read MoreBSL – Credit Suisse rates the stock as Outperform
The broker suggests reduced US steel tariffs for Canada could result in US steel spread pressure as imports potentially rise, impacting on already materially lower steel prices. US scrap prices may rise on likely increased supply from Turkey and reduced supply from Canada.
Read MoreBSL – UBS rates the stock as Buy
Six months ago management was of the opinion the industry structure was the best in 10 years. Since then, weak Chinese hot-rolled coil prices have meant the North Star spread has fallen around -35% to US$360/t and the broker notes incremental new supply is coming to the US.
Read MoreBSL – UBS rates the stock as Buy
Six months ago management was of the opinion the industry structure was the best in 10 years. Since then, weak Chinese hot rolled coil prices have meant the North Star spread has fallen around -35% to US$360/t and the broker notes incremental new supply is coming to the US.
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