TSX:STLC - Post Discussion
Post by
trendstr on Mar 20, 2024 3:28pm
First mention of M&E, price rebound and upgrade to buy
These comments from Stifel GMP, from February, 2024 are encouraging for Stelco,
11:04 AM EST, 02/23/2024 (MT Newswires) -- Stifel GMP on Friday upgraded its rating on the shares of steelmaker Stelco Holdings (STLC.TO) and raised its price target to C$50.00 from C$47.00.
"We are upgrading STLC to BUY from Hold, under the purview that its base dividend and a similar special dividend to 2023 of $3.00/sh would provide an implied return of 12%. This return profile is augmented by the potential for a rebound in steel prices in summer or late 2024E. The idiosyncratic item that could also benefit investors is M&A, which is clearly becoming a greater focus. We believe 12-month upside (ex M&A) could approach 35-40% with a $3.00/sh special divvy while downside is 10%. We are increasing rating to BUY from Hold, while our target price rises to $50.00/sh (prior: $47.00/sh), with an unchanged target 25E EV/EBITDA multiple of 6.0x," analyst Ian Gillies wrote.
Be the first to comment on this post