Credit Suisse assesses the company’s update is, on the whole, a “good result”. The broker suspects it underestimated a spike in DIY sales and omitted the boost from promotional activities.
The broker moderates its expectations of a decline in the fourth quarter but leaves FY20-21 estimates unchanged. Neutral rating and $2.70 target maintained.
Sector: Capital Goods.
Target price is $2.70.Current Price is $2.51. Difference: $0.19 – (brackets indicate current price is over target). If RWC meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
