Jefferies cuts PT for BlueScope, Morningstar holds view as SGH deal looms

Jefferies cut price target for Australia's BlueScope BSL.AX to A$35 after lowering 2H26, FY27 EBIT outlook due to a weak Australian Steel Products (ASP) environment, adding that stock's near-term direction hinges on SGH's SGH.AX next move after BSL rejected its initial bid

Jefferies said the company’s 2H26 outlook was below expectations, mainly due to weaker ASP pricing

Meanwhile, Morningstar maintained its fair value estimate at A$27, 4.8% below last close, assuming a 50% chance of a deal around A$30, but valuation would revert to A$24 stand-alone if no deal proceeds

Morningstar noted second-half guidance was stronger than expected, helped by higher U.S. spreads and volumes

Six of eight analysts rate the stock "buy" or higher and two "hold" with a median price target of A$30.75, as per data compiled by LSEG

Up 21.7% YTD, as of last close