FBU – UBS rates the stock as Neutral

By Broker News | More Articles by Broker News

UBS observes Fletcher Building’s share price is now sitting in line with pre-covid-19 levels, post some significant earnings upgrades with construction activity in New Zealand noting a rebound post-lockdown along with cost-saving initiatives by the company.

The broker expects construction spend in New Zealand to lift by 12% in 2021-22 with stronger residential and infrastructure activity countered by lower non-residential work. Infrastructure expenditure on projects over $100m is expected to increase by 8% by 2022.

The broker believes Fletcher Building will restart its dividend of 15c in FY21.

Neutral rating is under review with the target rising to NZ$6 from NZ$3.50.

Sector: Materials.

Current Price is $5.53. Target price not assessed.

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →