BLD - Macquarie rates as Outperform
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The company has announced the sale of its concrete & quarries business in Denver, Colorado. The sale, for US$127m, is at a discount to listed peers but, as a single asset, Macquarie believes the multiple represents a fair price.
The broker suggests divesting this non-core asset will likely improve management's focus as well as the balance sheet. Outperform rating and $8.45 target maintained.
Target price is $8.45.Current Price is $6.74. Difference: $1.71 - (brackets indicate current price is over target). If BLD meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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