BlueScope Looks Fairly Valued Versus U.S. Steelmakers -- Market Talk

Dow Jones04-16

2308 GMT - Citi raises its price target on BlueScope Steel by 9.9%, to A$24.50/share, but retains a neutral call given a big lift in its earnings is unlikely to happen before FY 2027. The bank also concludes that BlueScope's stock isn't cheaper than rivals in the U.S. steel industry, which trade at 8x Ebitda but generate a higher return on invested capital. "For BlueScope to rerate to similar U.S. steel peer Ebitda multiples, we would need to see an incremental improvement in ROIC," analyst Paul McTaggart says in a note. "Unfortunately for the bulls, even in FY 2027 our BlueScope ROIC forecast is only 10%." So, McTaggart says it would be hard to justify an enterprise value-to-Ebitda multiple above 6x. BlueScope ended Monday at A$23.80. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

April 15, 2024 19:08 ET (23:08 GMT)

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The bank also ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"X","symbol_name":"美国钢铁","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2427858628","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2427858628","pubTimestamp":1713222480,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2308 GMT - Citi raises its price target on BlueScope Steel by 9.9%, to A$24.50/share, but retains a neutral call given a big lift in its earnings is unlikely to happen before FY 2027. 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