The company has maintained FY19 guidance and the first half is only expected to contribute 45-47%.
The weighting to the second half is on the back of lower second half commodity costs, seasonality in John Guest and the progressive accumulation of transaction synergies.
Deutsche Bank, while pleased with how the integration of John Guest is going, believes Reliance Worldwide must continue to progress growth beyond repair/maintenance and into new construction.
However this is likely to be difficult in a deteriorating macro environment. Hold rating maintained. Target is $4.60.
Sector: Capital Goods.
Target price is $4.60.Current Price is $4.62. Difference: ($0.02) – (brackets indicate current price is over target). If RWC meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
