BMO Capital analyst Katja Jancic has maintained their neutral stance on ASTL stock, giving a Hold rating yesterday.
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Katja Jancic’s rating is based on a combination of factors affecting Algoma Steel Group’s current and future performance. The company provided a better-than-expected adjusted EBITDA guidance for the second quarter of 2025, which was less negative than anticipated. However, challenges such as macroeconomic uncertainties and trade issues, including the recent increase in Section 232 tariffs, continue to pose risks.
Additionally, while Algoma has made progress in its transformation to an electric arc furnace (EAF) producer, achieving its first steel production from one of the EAFs, the full benefits of this transition are expected over a longer term. The anticipated improvements in profitability, cost efficiency, and valuation multiples from this shift are promising, but the current market conditions and uncertainties warrant a cautious approach, leading to the Hold rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$9.00 price target.
ASTL’s price has also changed moderately for the past six months – from $8.400 to $6.630, which is a -21.07% drop .