Couple of broker downgrades causing a bit of downward pressure today...
Downgrade to Sell from Neutral
UBS is cautious about the recent momentum in steel prices and spreads. US steel prices and spreads have lifted by 8-10% since the trough in late October but the spread remains below the company's first half guidance.During this time the stock has rallied 16%. Rating is downgraded to Sell from Neutral and UBS cuts FY20 estimates for earnings (EBIT) by -17%. Target is reduced to $11.94 from $12.20.
Downgrade to Equal-weight from Overweight
Morgan Stanley believes the recent strength in the share price more than accounts for the positive momentum in steel prices. The broker believes investors should capitalise on the strength in the share price and downgrades to Equal-weight from Overweight.Earnings (EBIT) forecasts are reduced by -9% for FY20 and -16% for FY21. While an improving steel price is positive, further price and spread increases are required to support forecasts. Morgan Stanley reduces the target to $13.50 from $14.00. Industry view: Cautious.
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Last
$21.81 |
Change
-0.220(1.00%) |
Mkt cap ! $9.577B | |||
| Open | High | Low | Value | Volume |
| $21.74 | $21.93 | $21.65 | $16.52M | 758.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1029 | $21.78 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $21.81 | 1265 | 1 |
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| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| BSL (ASX) Chart |