Macquarie is bullish on CSR’s building products segment led by a more resilient detached market and has raised FY21 building products operating income forecast by 23%.
The broker notes CSR has been able to manage its costs proactively and has a pristine balance sheet, well positioned to weather tougher markets and support M&A opportunities.
Macquarie reiterates its Outperform rating with the target price increasing to $4.60 from $4.35, driven by higher earnings expectations from building products.
Target price is $4.60.Current Price is $3.94. Difference: $0.66 – (brackets indicate current price is over target). If CSR meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).