BlueScope $150m extension to productivity program could lift share price $3: RBC Capital Markets
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More news: BlueScope has unveiled a $150 million extension to its ongoing FY26 productivity program, which RBC Capital Markets analyst Owen Birrell says could lift the company’s share price by $3.
At 3:15pm AEDT, shares in BlueScope Steel had slipped 1.4% to $29.83. RBC Capital Markets reiterated its ‘outperform’ rating on the stock and its 12-month price target of $29.50 per share.
In a research note Birrell said recent “‘highly defensive’ rhetoric from BSL’s Board and apparent support from majority shareholders” against a takeover proposal by SGH and Steel Dynamics has “set a very high hurdle for any subsequent takeover bid”.
Birrell said BlueScope’s supposed "clear program to deliver value", announced alongside the commencement of new CEO Tania Archibald on Monday, will be an attempt to prove to shareholders the steelmaker can improve earnings and support its share price in the absence of a subsequent takeover bid.
While most of the program was already in progress, the existing $200 million cost saving program will now be extended by $150 million.
What they said: “We look forward to the pending interim result for BSL to provide some guidance as to which businesses these cost savings are to come from, before we formally consider and incorporate them into our earnings estimates,” Birrell said.
Tania Archibald starts new role as BlueScope CEO
The news: Tania Archibald is set to commence her role today as managing director and chief executive officer of BlueScope following her appointment on 5 November 2025.
The context: Archibald succeeds Mark Vassella, who stepped down after serving eight years.
Her appointment follows BlueScope's board rejection of a $13 billion takeover proposal from SGH and Steel Dynamics, which it said significantly undervalued the company.
What they said: The new CEO reiterated the board's rejection, saying: "The board rejected the proposal, and I supported the rejection. It very significantly undervalued this company. It sought to transfer value away from our shareholders by buying BlueScope on the cheap."
She said the board “remains open to any proposal that genuinely reflects BlueScope's fundamental value".
The sources: ASX, RBC Capital Markets research
