Algoma Steel gets higher after BMO Capital's bull case implies 36% upside

• Algoma Steel (NASDAQ:ASTL) stock is up 7% today after BMO Capital Markets starts off coverage with an Outperform rating.
• BMO Capital's analyst David Gagliano assigns the price target of C$17 to rep around 36% upside potential from last price.
• SA Pro Editor sees a 45% upside in Algoma Steel at a "Very Bullish" stance. The author estimates the Canadian steel producer's future cash flows will drive down net debt and accruing value to equity holders.
• The author writes a long-term catalyst could be Algoma's production expansion plans (to ~3.7 million tons from current ~2.8 million tons), as it builds electric arc furnaces (coming online in 2024) supported by government subsidies.