UBS lowers its rating to Neutral from Buy as the stock is approaching the target. House prices are lifting and housing approvals appear to be bottoming but the next 12 months are still likely to experience a contraction ahead of a trough, in the broker’s view.
US activity needs to pick up faster and Australian housing approvals lift further to regain confidence. Target is reduced to $4.90 from $5.20. Boral has reiterated FY20 net profit guidance to be -5-15% below FY19.
Sector: Materials.
Target price is $4.90.Current Price is $4.94. Difference: ($0.04) – (brackets indicate current price is over target). If BLD meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
