CSR reported first half profit in line with Credit Suisse. Building products revenue growth fell short of expectation but earnings exceeded. FY22 guidance of $34m in earnings for the property division is ahead of forecast and some $50m is already contracted for FY23-25.
Supply issues? Margins beat consensus on an ongoing “excellent track record of cost management”, with prices beating costs in the half. However the broker does expect supply issues to pressure margins in a more moderate second half.
Neutral retained, target rises to $6.70 from $6.00.
Sector: Materials.
Target price is $6.70.Current Price is $6.25. Difference: $0.45 – (brackets indicate current price is over target). If CSR meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
