UBS updates modeling following a trough in earnings that appears shallower than previously expected. The broker now assesses the risk/reward is balanced and retains a Neutral rating.
US automotive manufacturers are slowly ramping up, although idled mills are coming back on line. In Australia a minimal impact from the pandemic is expected and market share momentum is intact.
Meanwhile, Australian detached construction is holding up well and Colorbond is outperforming the market, a trend the broker expects will continue. Target is raised to $11.50 from $10.50.
Sector: Materials.
Target price is $11.50.Current Price is $11.54. Difference: ($0.04) – (brackets indicate current price is over target). If BSL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
