Insights

Could the BlueScope (ASX:BSL) share price hit $27 by the end of 2021?

Is this steel maker a share to buy?
The post Could the BlueScope (ASX:BSL) share price hit $27 by the end of 2021? appeared first on The Motley Fool Australia. –

In afternoon trade, the BlueScope Steel Limited (ASX: BSL) share price is trading lower.

At the time of writing, the steel producer’s shares are down 1% to $21.26.

Not that longer term shareholders will be too fazed. The BlueScope share price is still up 21% year to date.

Could the BlueScope share price rise to $27.00 by the end of the year?

Despite the impressive gain by the BlueScope share price this year, one leading broker still believes it can go a lot higher.

According to a note out of Citi this week, its analysts have retained their buy rating and $27.50 price target on the company’s shares. In addition, the broker is forecasting an unfranked 50 cents per share dividend in FY 2022.

Based on the current BlueScope share price, this implies a potential return of 29% before dividends and over 31% including them.

In light of this, it appears as though the team at Citi see scope for BlueScope’s shares to be trading around the $27.00 mark come the end of the year.

What did the broker say?

Citi is bullish on the BlueScope share price due to its belief that the company will deliver a very strong profit result (>100% increase in net profit) in FY 2022. It also notes that the company has recently upgraded its guidance to reflect a stronger than expected performance.

The broker commented: “We update our model following revised guidance from BSL. The company now expects 1H FY2022 EBIT to be in the range of $2.1 to $2.3b (previous guidance $1.8-2.0b). Subsequently we raise our 1H FY22 EBIT est. to $2.24b (previously $1.91b). Key driver behind new guidance is strong North Star HRC spreads, better ASP volumes and strong momentum in NA coated products business. BSL will provide more detail on trading conditions at its 2021 AGM (scheduled for 18 November). We maintain our Buy call and A$27.50/shr target price.”

All in all, this could make BlueScope one to watch in the coming months.

The post Could the BlueScope (ASX:BSL) share price hit $27 by the end of 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in BlueScope right now?

Before you consider BlueScope, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BlueScope wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

HESTA boss calls out ASX 300 companies without net-zero targets

BlueScope (ASX:BSL) share price rises on earnings upgrade

The BlueScope (ASX:BSL) share price has dropped 5% in a week. What’s happening?

5 things to watch on the ASX 200 on Wednesday

These were the 5 worst performing ASX 200 shares in September

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!