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Highlights

  • Jefferies maintains ‘Buy’ rating on BlueScope Steel with a price target of AU$30.

  • Improved U.S. steel spreads drive earnings potential, with spot spreads at $545 per ton.

  • Stock has surged 21.5% year-to-date.

Jefferies has revised its BlueScope Steel (ASX:BSL) forecast to reflect improving steel market conditions, while reaffirming its ‘Buy’ rating and a price target of AU$30 per share.

The brokerage pointed to U.S. steel spreads as a key driver of earnings growth, noting that the current spot spread stands at $545 per ton, supported by rising demand and positioning ahead of potential tariffs. This market dynamic is expected to underpin BlueScope’s financial performance in the near term.

Jefferies also highlighted cost-reduction efforts and expansion projects as long-term growth catalysts, projecting a mid-cycle EBIT of approximately AU$1.9 billion. However, the brokerage believes the company’s current valuation does not fully reflect its earnings potential, suggesting further upside for investors.

BlueScope’s stock has gained 21.5% year-to-date.