Boral has downgraded its guidance for FY19, while noting an earnings skew to the second half. The broker sticks with Outperform.
A number of Australian infrastructure projects have been slow to start, the broker notes, but infrastructure continues to remain supportive. US operations have been impacted by wet weather, particularly in Texas. Discussions with regard the USG JV are ongoing, and remain a key catalyst, the broker believes. Valuation stands out both historically and relative to peers.
Target falls to $6.20 from $6.60.
Target price is $6.20.Current Price is $4.58. Difference: $1.62 – (brackets indicate current price is over target). If BLD meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).