Boral’s result has provided the broker with more confidence management’s FY19 guidance can be achieved. A fly ash price increase of 13% and counting underpins that confidence although guidance for a flat FY in Australia still looks risky in the context of the housing slowdown, in the broker’s view.
It is that which keeps the broker on Neutral, ahead of any news on the company’s JV plans which at the moment are fluid. Boral may buy out its USG JV or enter a new JV with Knauf in Asia. Stay tuned. Target unchanged at $5.00.
Sector: Materials.
Target price is $5.00.Current Price is $4.89. Difference: $0.11 – (brackets indicate current price is over target). If BLD meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
