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Algoma Steel Group Inc
Symbol ASTL
Shares Issued 104,038,495
Close 2024-02-09 C$ 11.03
Market Cap C$ 1,147,544,600
Recent Sedar Documents

Globe says Algoma valuation called "inexpensive"

2024-02-09 08:32 ET - In the News

The Globe and Mail reports in its Friday, Feb. 9, edition that Stifel analyst Ian Gillies is keeping his "buy" recommendation for Algoma Steel Group intact. The Globe's David Leeder writes that Mr. Gillies cut his share target by $1.25 to $15.25. Analysts on average target the shares at $14.94. Mr. Gillies says in a note: "Absent commodity price changes, four idiosyncratic items are going to drive Algoma Steel Group's share price performance: (1) a successful restart of the steel plant in two weeks and normalization of coke production later this year; (2) delivering the EAF project in the prescribed cost range of $825-million to $875-million; (3) retaining sufficient liquidity to finish the EAF and ramp up production and (4) depicting reasonable profitability during the EAF transition period beginning in calendar 2025. We think there is a good chance the first three issues get resolved over the next six months, thus retaining our view that there is long-term value in the stock. The stock's valuation is inexpensive at 2.9 times fiscal 2026 estimated EV/EBITDA." The Globe reported on Jan. 3 that Beacon Securities analyst Ahmad Shaath said he saw limited upside at Algoma Steel, which could then be had for $12.75.

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