For the 4 months ended October, operating income is up 55% versus last year led by revenue growth and margin expansion. Resilient activity levels in both New Zealand and Australia have helped the case, remarks UBS.
New Zealand’s core operating income is up with solid lift across all categories (concrete, building products and distribution). Construction was on the lower side, notes the broker, due to the seasonally low period for civil construction activity.
Fletcher Building did not provide any FY21 guidance on account of macro-economic uncertainties.
Neutral rating is under review with a target of NZ$3.50.
Current Price is $4.87. Target price not assessed.