First-half results were in line with expectations, given recent guidance. The results were affected by lower volumes and margin pressure as a result of the contraction in residential activity.
UBS believes the outlook is challenged as infrastructure work is not able to offset the housing decline in a seamless way.
The company has reaffirmed its intention to take market share in infrastructure work where it is vertically integrated and to also maintain the capacity to fund acquisitions.
Sell rating and $3.15 target maintained. The broker believes, while the macro outlook is improving, the risk/reward is not supportive.
Sector: Materials.
Target price is $3.15.Current Price is $3.07. Difference: $0.08 – (brackets indicate current price is over target). If ABC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
