-- Stifel Canada on Monday maintained its buy rating on the shares of Algoma Steel Group (ASTL.TO) and its C$11.50 price target after hosting the company's management for investor meetings.
"We hosted Rajat Marwah (CEO) and Michael Moraca (CFO) for investor meetings, which we would define as generally positive in the context of the company's current financial outlook. The company is working towards transitioning itself to being a Canadian champion for steel products, including the addition of (1) a beam mill; and (2) broadening its plate opportunity. We believe the company will be a direct and indirect beneficiary of the Canadian Federal Government's spending focus on defense and infrastructure. Valuation remains largely irrelevant given the company is forecast to generate only $35 mm of EBITDA in 2027E, but there are a number of catalysts in 2026E that could positively impact that outcome (particularly CUSMA negotiations). We remain optimistic on the turnaround story, thus retain our BUY rating and $11.50/sh target price," analyst Ian Gillies wrote.
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Price: $6.34, Change: $-0.16, Percent Change: -2.46%