After a short period of restriction Macquarie now rates Boral as Outperform with a target of $7.80. The broker believes the company’s transformation plan, a recovery in infrastructure activity and the prospect of significant capital returns are an attractive combination.
Corporate activity is an additional prospect. The company has sold almost $4.5bn in assets recently and will have $3bn in excess capital on the settlement of the US building products sale. Macquarie suspects the US construction materials segment will also be sold.
Sector: Materials.
Target price is $7.80.Current Price is $7.16. Difference: $0.64 – (brackets indicate current price is over target). If BLD meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
