BlueScope Steel has updated its earnings guidance for the second half and expects the operating income to be $1-1.08bn. Morgan Stanley notes the upgrade was driven primarily by better prices and volumes at North Star.

The broker expects the update to drive upgrades in FY22 and expects some continuation of the positive market trends.

Equal-Weight rating with the target rising to $24.50 from $23.50. Industry view: In-line.

Sector: Materials.

Target price is $24.50.Current Price is $22.16. Difference: $2.34 - (brackets indicate current price is over target). If BSL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena