Morgan Stanley says US tariffs could benefit Australia's BlueScope Steel

Shares of BlueScope Steel BSL.AX rise 2.9% to A$23.24

Morgan Stanley says low Asian flat steel prices could prompt imports into the U.S., even with a 25% tariff, which would benefit co's operations there

BSL's North Star Steel in the U.S. makes up ~21% of the firm's total revenue

However, notes that added capacity coming online in U.S. steel market between 2025 and 2027 may not find the demand to match it, potentially affecting co's U.S. positioning

Morgan Stanley maintains its "Equal-Weight" rating and price target of A$24

Eight analysts rate the stock "buy" or higher, two "hold" and three "sell"; their mean PT is A$25.68 – LSEG data

Stock up 24.4% YTD including current session