Credit Suisse increases estimates for net profit by 53% in FY20 and 22% in FY21. The contractor outlook in the US has improved materially.
Reports are more mixed in the UK and sales are expected to be down -20-30% amid weakness in the renovation segment.
The broker is more confident Reliance Worldwide can outperform peers and upgrades to Outperform from Neutral. Target is raised to $3.25 from $2.70.
Sector: Capital Goods.
Target price is $3.25.Current Price is $2.97. Difference: $0.28 – (brackets indicate current price is over target). If RWC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
