Stifel Canada maintained its buy rating on the shares of Algoma Steel Group (ASTL.TO) with a C$13.00 price target after the Canadian government to protect steel industry from U.S. tariffs.
"Directionally positive, but we suspect the Government of Canada's announcements are a temporary measure. We believe the end result will be a significant reduction in tariffs that will be resolved through a trade deal with the United States. The Canadian Government has announced a number of measures to protect the Canadian steel industry, including: (1) matching tariffs on the United States beginning July 21, 2025 (which is notably outside the 30-day window for Canada and the U.S. to reach a trade agreement) and (2) tariff quotas on non-FTA countries to limit dumping. In our view, these measures are helpful, but the more meaningful catalyst will be a US-Canada trade deal that lowers steel tariffs on Canada. As important, we believe liquidity risk is largely off the table for Algoma at this point, as evidenced by its debt trading up to $0.94-95 in recent days (current: $0.91)," analyst Ian Gillies wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 9.50, Change: -0.04, Percent Change: -0.42
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