Katja Jancic, an analyst from BMO Capital, maintained the Hold rating on Algoma Steel Group. The associated price target remains the same with C$6.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Katja Jancic has given his Hold rating due to a combination of factors, including a weaker near-term backdrop for sheet steel in Canada that is pressuring volumes and earnings. While management is ramping up the EAF, shifting more output toward higher-margin plate products, and cutting costs, shipment guidance for FY26 may be difficult to achieve given ongoing market softness.
At the same time, Jancic highlights that Algoma’s longer-term strategy, including a potential structural beam mill and new defense-related joint venture, could support improved profitability and diversification over time. The company also maintains a solid liquidity position, which reduces balance sheet risk, but the combination of near-term earnings pressure and execution risk around growth projects justifies keeping the price target unchanged at $6 and the rating at Hold rather than moving to a more bullish stance.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a C$7.00 price target.