UBS cuts its FY22 and FY23 profit forecasts for Boral following a negative trading update and lowered FY22 earnings (EBIT) guidance, due to the impacts of wet weather and energy cost inflation (coal and diesel).
After allowing for these impacts and marking-to-market its sum-of-the-parts valuation, the broker lowers its target price to $3.45 from $3.65. Neutral.
The broker sees cost headwinds continuing in FY23 with diesel making up the the bulk of a -$30m increase in forecast costs.
Sector: Materials.
Target price is $3.45.Current Price is $3.33. Difference: $0.12 – (brackets indicate current price is over target). If BLD meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
