Following a strengthening of lead indicators in each of Reliance Worldwide’s three key regions, Ord Minnett upgrades its earnings forecasts and increases its target price to $6.20 from $5.90. The broker’s Buy rating is maintained.
The analyst feels risk remains to the upside, given the potential for acquisitions and/or capital management due to an under-geared balance sheet.
Sector: Capital Goods.
Target price is $6.20.Current Price is $5.34. Difference: $0.86 – (brackets indicate current price is over target). If RWC meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).