BLD – Macquarie rates the stock as Outperform

Boral has downgraded FY22 earnings (EBIT) guidance  to between $100m-$110m from $145m-$155m as wet weather continues to dog works.

The news comes hot on the heels of the March downgrade and Macquarie now lowers December-half estimates, expecting further rain in Queensland.

The broker expects higher-than-forecast energy prices will comprise $15m of the earnings toll, and expects prices to remain high out to June; attributes $30m of the downgrade to weather; and the balance to disappointing Transformation guidance (down to $45m-$50m from $60m-$75m).

EPS forecasts fall -17% in FY22, -6% in FY23 and are steady in FY24.

Outperform rating retained, Macquarie spying strong demand pipeline in infrastructure spend and multi-residential once the sun returns. Target price falls to $4.05 from the previous entry in the FNArena database of $4.30.

Sector: Materials.


Target price is $4.05.Current Price is $3.11. Difference: $0.94 – (brackets indicate current price is over target). If BLD meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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