ABC – Macquarie rates the stock as Neutral

Adelaide Brighton has downgraded FY profit guidance by -10-15% due to weak demand in residential construction, insufficiently offset by a lower exposure to infrastructure, falling cement/concrete prices in Qld which the broker sees going lower, and competition in South Australia.

The broker cuts forecasts by -19% and -14% in FY19-20 to below the low end of guidance, noting earnings visibility is poor. Despite a de-rating, the broker retains Neutral on ongoing earnings risk. Target falls to $3.70 from $4.65.

Sector: Materials.

Target price is $3.70.Current Price is $3.64. Difference: $0.06 – (brackets indicate current price is over target). If ABC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →