Following 1H results for Reece, Morgans lifts FY22-24 EPS estimates by 6%, 7% and 6%, respectively, and raises its target price to $20.10 from $18.40. However, the valuation is regarded as full and the Hold rating is maintained.
Management noted customers are busier than ever and construction activity remains solid despite a number of risks, which include supply chain pressures inflation and labour shortages.
Sector: Capital Goods.
Target price is $20.10.Current Price is $19.70. Difference: $0.40 – (brackets indicate current price is over target). If REH meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
