The Globe and Mail reports in its Friday, June 23, edition that Stifel analyst Ian Gillies has reaffirmed his "buy" recommendation for Algoma Steel Group. The Globe's David Leeder writes that Mr. Gillies cut his share target by $1.75 to $14.25. Analysts on average target the shares at $13.25. Mr. Gillies says in a note: "Our thesis remains largely unchanged following this quarter's update as we continue to believe there is significant upside potential for the stock. Firstly on the positives, the company's nearterm financial performance is expected to be strong while they continue to generate FCF through working capital releases. On the other hand, capex is expected to be $220-million higher during fiscal 2024 and 2025, however, we believe the company is able to fund its projects with no external equity required. Our investment thesis of Algoma's valuation rerating has taken a hit, as the elevated construction costs have eaten into the equity value by $1.75 per share. Nonetheless, we believe this can be made up by higher-than-currently-forecasted profitability in FY2025E if spot steel persists at $925 (U.S.)/ton versus our modeled $800 (U.S.)/ton. We continue to believe that the risk/reward is attractive."