Morgans initiates coverage on A&NZ steel distributor and value-added processor Vulcan Steel with an Add rating in the belief the business is at a cyclical low point in earnings.
Manufacturer BlueScope steel ((BSL)) has a greater capital intensity [a return on invested capital (ROIC) of 14.6%] compared to Vulcan with a ROIC of 21.3%, notes the broker.
The Steel division includes processing and distribution of steel beams, plates and coil, while Metals includes stainless steel, engineering steel and aluminium products.
Morgans begins by setting a
Sector: No Sector.
Target price is
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