BlueScope Steel Ltd (ASX: BSL) shares are trading in the red on Wednesday morning. At the time of writing the shares are 0.14% lower at $29.50 a piece.
But today's slight dip has barely dented the huge gains the Australian-based steel manufacturer has made for the week so far. Over the past five days, BlueScope's share price has jumped 22.87% and it is now trading 54.21% higher than this time last year.
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What pushed BlueScope Steel's shares higher this week?
On Monday afternoon, after the ASX closed, the company posted an ASX announcement confirming takeover speculation in the media.
BlueScope said it has received an unsolicited, non-binding, and indicative proposal from an Australian and US consortium to acquire all BlueScope shares under a scheme of arrangement. The consortium comprises SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD).
According to the announcement, the consortium has offered $30.00 cash per BlueScope share.
The deal is subject to exclusivity, due diligence and a material adverse change in BlueScope's business. It is also subject to a unanimous recommendation from the BlueScope board, approval of BlueScope shareholders, no further share buy-backs, final approvals from SGH and Steel Dynamics' boards, and necessary regulatory approvals. BlueScope has not yet decided if it will accept the proposal.
Investors were clearly impressed with the news which caused a flurry of buying activity yesterday morning.
Are the shares a buy, hold or sell for 2026?
BlueScope has previously rejected takeover offers of up to $29.00 per share saying that they undervalue the company's future prospects. At $30.00 per share, I'm uncertain whether the consortium's latest offer will be enough to get the latest deal over the line.
BlueScope's growth plan for 2026 includes focusing on its operation efficiency, advancing majority projects and plans to target $500 million in annual earnings growth by 2030.
To me, the company and its growth plans represent significant value.
What do analysts think of the stock?
TradingView data shows that analysts are mostly positive on the outlook for BlueScope Steel shares. Out of 9 analysts, 6 have a buy or strong buy rating.
The maximum predicted target price is $37.00 per share. At the time of writing that implies the stock could jump another 25.47% over the next 12 months.
While there is no crystal ball to tell exactly where the share price will be this time next year, it's clear that some analysts think the stock has a lot more room to run, even after this week's uptick.
