Brickworks’ result was driven by demand for industrial property driving valuations higher, the broker notes. Earnings momentum nonetheless continues to build in both the building products and property divisions.
Other than disruption in NSW (rain), the broker believes the second half will remain strong on HomeBuilder demand, particularly in WA. The company also boasts property development potential that could boost rental income by 44%.
Buy retained, target rises to $23.00 from $22.70.
Sector: Materials.
Target price is $23.00.Current Price is $19.80. Difference: $3.20 – (brackets indicate current price is over target). If BKW meets the Citi target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
