UBS downgrades Reliance Worldwide Corp to Neutral from Buy with the target price increased to $3.85 from $3.65.
The downgrade is driven by a 40% share price rise after the company released its FY20 results. UBS notes the market is currently pricing in a long term US revenue growth rate of 7% (which was 0% before the results) and which is ahead of the broker’s estimated 5%.
Sector: Capital Goods.
Target price is $3.85.Current Price is $3.98. Difference: ($0.13) – (brackets indicate current price is over target). If RWC meets the UBS target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).