At its AGM, Brickworks noted it expects a short down-cycle for building products locally, with order intake improving in the first half next year. Property should perform well in FY20 from further development completions.
There have also been early gains from recent US acquisitions, with another brick company in the sights for February.
Macquarie sees all of the above as positive, and lifts its target to $18.50 from $17.05. But despite the stock trading well below its relative PE average, key uncertainties in the company’s investment portfolio keep the broker on Neutral.
Sector: Materials.
Target price is $18.50.Current Price is $18.36. Difference: $0.14 – (brackets indicate current price is over target). If BKW meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
