Ian Miles Cheong notes algorithm favors posting high-volume content about himself.

Ian Miles Cheong notes algorithm favors posting high-volume content about himself.

In a recent update, Morgan Stanley has reiterated its preference for BlueScope Steel (BSL) over Sims Metal Management (SGM) ahead of the second half of the fiscal year 2025 (H2 FY25) earnings. The financial institution cited stronger North American steel spreads and healthier demand drivers as the primary reasons for its preference [1].

BlueScope Steel is expected to report a H2 FY25 EBIT of A$484 million ($314.5 million), which is above the consensus and the company's own guidance. This forecast is underpinned by stronger-than-expected North American pricing. Morgan Stanley anticipates that the strength in North America will offset volume headwinds in the Australian steel products business and challenges in New Zealand, maintaining its bullish stance on BSL into FY26 [1].

In contrast, Morgan Stanley expects SGM's H2 FY25 EBIT to be 3% below the consensus and more than 15% below the FY26 onwards estimates. The financial institution cited risks to trading margins and limited volume growth without mergers and acquisitions (M&A) as key factors. Additionally, elevated Chinese exports and stagnant Asian spreads were noted as weighing on the sector [1].

The currency exchange rate is A$1 = $1.5392 [1].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TZ000:0-morgan-stanley-picks-australia-s-bluescope-over-sims-ahead-of-h2-fy25-results/