** Jefferies cut price target for Australia's BlueScope BSL.AX to A$35 after lowering 2H26, FY27 EBIT outlook due to a weak Australian Steel Products (ASP) environment, adding that stock's near-term direction hinges on SGH's SGH.AX next move after BSL rejected its initial bid

** Jefferies said the company’s 2H26 outlook was below expectations, mainly due to weaker ASP pricing

** Meanwhile, Morningstar maintained its fair value estimate at A$27, 4.8% below last close, assuming a 50% chance of a deal around A$30, but valuation would revert to A$24 stand-alone if no deal proceeds

** Morningstar noted second-half guidance was stronger than expected, helped by higher U.S. spreads and volumes

** Six of eight analysts rate the stock "buy" or higher and two "hold" with a median price target of A$30.75, as per data compiled by LSEG

** Up 21.7% YTD, as of last close

(Reporting by Anjali Singh in Bengaluru; Editing by Lisa Shumaker)

((anjali.singh2@thomsonreuters.com;))