Adbri’s Q1 market update proved better-than-expected as UBS notes there has been a lot of bad weather throughout the period. A positive is taken from cost control in light of inflation challenges awaiting for the industry.
UBS has lifted forecasts but remains skeptical, arguing there is no genuine prospect for a step change in margins. Thus others in the sector are seen as better propositions, including James Hardie ((JHX)), Reliance Worldwide ((RWC)) and CSR ((CSR)).
The Neutral rating is retained as well as the target price of $3.25
Sector: Materials.
Target price is $3.25.Current Price is $3.03. Difference: $0.22 – (brackets indicate current price is over target). If ABC meets the UBS target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
