BlueScope Steel (BSL) Stock Recommendation

BlueScope Steel (BSL) has a maintained Reduce 2 stock recommendation with a $6.25 share price target from stock analyst UBS. UBS has downgraded their hard coking coal forecasts for the 2007 contract from US$115/t to US$95/t reflecting increasing pressure from steel mills as Western mills volumes weaken amid softening steel markets. Their valuation for BlueScope Steel is $7.80 from $7.66 and their share price target had an increase of 5 cents following a slight increase in earnings estimates. UBS has noted that: "Outlook commentary from Q3 results of US steel companies confirms a softening outlook, and we are seeing prices pull back. Maintenance outages are being brought forward or extended in US and Europe, but we are yet to see material production cut backs. We watch for weakness in the US as we believe this will result in oversupply in Asia as US imports are pushed back."

BlueScope Steel Limited is listed on the Australian Stock Exchange (ASX) under stock code BSL. You can view their investor website here. BSL was listed on the ASX on 15 July, 2002. You can read previous news and stock recommendations about BlueScope Steel. BlueScope Steel is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets. The company's products play a big part in people's everyday lives, being vital components in suburban houses, landmark buildings and structures, popular makes of cars, and containers for food and beverages. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!