Highlights

  • Jefferies issued a buy rating on BlueScope Steel with a target price of AUD 28, while E&P assigned a positive rating with a target price of AUD 27.88.
  • BlueScope agreed to sell its 50% stake in Tata BlueScope Steel, expecting net proceeds of AUD 179 million and an estimated AUD 70 million net profit after tax.
  • The company has commenced AUD 200 million in cost and productivity initiatives and outlined a long-term earnings uplift potential of AUD 400 million to AUD 900 million.

BlueScope Steel (ASX: BSL) has received favourable analyst attention as Jefferies assigned a buy rating with a target price of AUD 28, while E&P provided a positive rating with a target price of AUD 27.88. The ratings come as the company advances its portfolio strategy and completes a major divestment aimed at sharpening its operational focus.

Stake Sale Marks a Major Strategic Milestone

BlueScope has agreed to sell its 50% interest in Tata BlueScope Steel (TBSL), a joint venture established in 2005 that has grown into a key provider of coated and painted steel products across India. The transaction will see Tata Steel acquire BlueScope’s entire stake, subject to regulatory approval in India.

The company expects net proceeds of AUD 179 million after taxes and fees, alongside an estimated AUD 70 million net profit after tax from the sale. BlueScope will also receive AUD 23 million in pre-completion dividends. Completion of the deal is expected in the second half of FY2026.

The sale recognises the value created over nearly two decades of joint venture operations and allows the company to concentrate on growth opportunities in its core markets.

Growth Programs and Productivity Improvements Underway

BlueScope continues to advance its earnings growth program, aimed at building long-term value across its steelmaking and downstream businesses. The company has commenced delivery of AUD 200 million in cost and productivity initiatives targeted for FY2026. These initiatives form part of a broader operational improvement program supporting competitiveness across multiple sites.

BlueScope is also progressing growth investments expected to contribute meaningfully to annual earnings by 2030. The company has outlined a potential earnings uplift of AUD 400 million to AUD 900 million, linked to the completion of these projects and to favourable spread conditions.

Property Portfolio Value Creation

Another long-term driver for BlueScope is its extensive 1,250-hectare property portfolio, which is being positioned for strategic value realisation. Early opportunities include the West Dapto development, which is expected to deliver incremental value as planning and infrastructure work progresses. The property segment remains a key part of the company’s broader capital deployment strategy.