The trading update revealed a much improved first half. Morgan Stanley expects the company will use the strong cash flow to facilitate capital management.

The stronger-than-expected performance in Australian Steel Products was supported by resilient volumes. Building products in Asia and North America also rebounded strongly. Morgan Stanley increases earnings estimates by 72% for FY21 and by 35% for FY22.

Equal-weight. Target is raised to $16.00 from $11.50. Industry view: Cautious.

Sector: Materials.

Target price is $11.50.Current Price is $15.92. Difference: ($4.42) - (brackets indicate current price is over target). If BSL meets the Morgan Stanley target it will return approximately -38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena