BKW – Citi rates the stock as Neutral

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Citi notes Brickworks’ FY19 performance beat the company’s own guidance (4% growth versus flat guidance), broadly showing off the inherent resilience that stems from a diversified set of operations. Record earnings from the Property business helped, of course.

The analysts highlight recent US brick acquisitions, Glen-Gery and Sioux City, are delivering incremental profit growth and further bolt-on acquisitions should be expected. Target price $18.50 with the analysts suggesting the domestic housing market is bottoming. Neutral.

Sector: Materials.

Target price is $18.50.Current Price is $17.54. Difference: $0.96 – (brackets indicate current price is over target). If BKW meets the Citi target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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