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Tuesday, 16 April 2024
BSL - BLUESCOPE STEEL LIMITED
Macquarie rates BSL as Outperform (1) - To reflect the re-rating of US peers, Macquarie lifts its North American multiples for both North Star and Building & Coated Products. The broker also expects an earnings recovery based on recovering steel prices in the US (and spreads).
Steel prices also appear to be bottoming in Asia, though spreads are being supported more by moderating prices of steel inputs, suggests Macquarie.
As occurred in Australia, BlueScope Steel's US portfolio composition is moving towards less volatile, value-added revenues over time, explains the analyst.
Outperform rating retained. Target price rises to $29.45 from $25.
Target price is $29.45 Current Price is $23.80 Difference: $5.65 If BSL meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges). Current consensus price target is $23.19, suggesting downside of -2.6%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 50.00 cents and EPS of 214.00 cents . At the last closing share price the estimated dividend yield is 2.10%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.12. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 209.1, implying annual growth of -3.8%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 11.4.
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 50.00 cents and EPS of 256.00 cents . At the last closing share price the estimated dividend yield is 2.10%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.30. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 206.4, implying annual growth of -1.3%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 11.5.
Market Sentiment: 0.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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