BlueScope Steel's (ASX:BSL) potential sale of US assets might unlock additional value above the existing bid from Seven Group Holdings and Steel Dynamics, based on sum-of-the-parts or break-up valuation, according to a Tuesday Jefferies note.

Jefferies has increased its forecast for the company's earnings before interest and tax for fiscal year 2027 by 15%.

The upgrade reflects higher expected steel spreads in Asia and the US during the first half of fiscal year 2027, the note added.

Jefferies kept a buy rating on Bluescope with a price target of AU$35.

The company's shares rose 2% in recent Tuesday trade.