From Financialpost · · 1m 10s
Algoma Steel Stock Could Jump 73% with Steel Aid
Algoma Steel shares may rise 73% after $5bn Canadian steel aid package.
In brief
Algoma Steel shares may rise 73% after $5bn Canadian steel aid package. Algoma Steel Group shares could jump 73% with $5bn government support for steel industry amid US tariffs. Originally reported by Financialpost.
Steel Aid Package Announced
Prime Minister Mark Carney and Ontario Premier Doug Ford announced $5 billion in support for Canada's steel industry.
“Canada is a significant importer of beam products”
Algoma Steel Shares Rise
Algoma Steel Group shares rose 15 per cent on the S&P/TSX composite index after the announcement.
Analyst Prediction
Stifel analyst Ian Gillies said Algoma could be a key beneficiary of the fund to build a beam mill.
Debt and Price Target
Algoma carries $920 million in debt and has a price target of $11.50 per share according to Gillies.
Market Reaction
Shares closed Friday at $6.63 with a 12-month price target of $7.63 based on four analysts.
Rosenberg's Sector Picks
David Rosenberg identified aerospace and defence as a top sector winner with exports to other countries up 30 per cent year over year.
Export Growth Strategy
Canada aims to double exports to other countries by 2036 with aerospace and defence leading the way.
Here's the gist
Algoma Steel Group shares could jump 73% with $5bn government support for steel industry amid US tariffs.
