Upgrade After reinstating coverage following completion of its recent secondary offering, BMO Nesbitt Burns analyst David Gagliano raised his target for Stelco Holdings Inc. (STLC-T) to $50 from $44 with an “outperform” rating to “keep pace” with the firm’s steel price forecast. The average on the Street is $43.38.
“In our view, Stelco’s longer-term EBITDA generation remains underappreciated/undervalued, with a number of current “self-help” opportunities to further improve longer-term EBITDA generation and sustainability likely to flow through results in 2021/2022,” he said.