ASTL - Algoma Steel surges as Stifel upgrades to Buy off steel market bottom

Algoma Steel Group ( NASDAQ: ASTL ) +6.4% after Stifel raised its recommendation to Buy from Hold with a C$15 price target, lifted from C$10.75, anticipating a near-term improvement in financial performance through an increase in volumes and higher unit pricing after the steel market bottomed in November 2022.

Stifel's Ian Gillies also cites the long-term value creation potential from the transition to an electric arc furnace which will better align Algoma's ( ASTL ) cost structure and allow for higher production.

The analyst also noted Algoma ( ASTL ) has lagged steel producer peers, but he believes the selloff is overdone with most of the company's operational issues now behind it.

Algoma Steel's ( ASTL ) EAF project development hides committed expenditures which should be taken into consideration, Almyra Research writes in an analysis published on Seeking Alpha .

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