deutsche bank rates bsl as buy

Deutsche Bank rates BSL as Buy
Tuesday, August 21, 2012 - 10:37
A lower than expected contribution from Coated Products meant Bluescope's result missed the broker, but the significant debt reduction is the highlight. BSL should break even in 1H13, management suggests, before Coated Products bounces back to deliver a positive 2H13.

The broker sees an improvement in the local housing market in 2013 which provides support for management's argument. Target and rating retained.

Target price is $0.66 Current Price is $0.40 Difference:$0.27 - (brackets indicate current price is over target). If BSL meets the Deutsche Bank target it will return approximately 67% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Deutsche Bank forecasts a full year FY13 dividend of 0.00 cents and EPS of 1.00 cents.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.50.