DJ Bluescope Delays the Inevitable, Deutsche Bank Says -- Market Talk
27/10/2015 10:57AM AEST
2357 GMT [Dow Jones]--Deutsche Bank says announcements from Australian steel manufacturer Bluescope Steel (BSL.AU) on Monday are positive, though the decision to keep Port Kembla steelworks open may not last indefinitely. "While we continue to think the closure of Port Kembla is inevitable, management's ability to deliver cost reductions likely delays the expensive decision 2-3 years." It is cutting its price target by 3.5% to A$5.01 a share and keeping a buy rating. Deutsche Bank also notes Bluescope increased its first-half earnings expectation, thanks largely to cost reductions. "We believe this is very positive as it shows management's ability to achieve cost reduction targets quickly." Bluescope's acquisition of the remaining 50% of its North Star joint-venture "makes strategic sense given the high quality asset." ([email protected]; @beckthurlow)
BSL Price at posting:
$4.32 Sentiment: Buy Disclosure: Held
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