Following a series of downgrades the past twelve months, the broker’s confidence in Boral’s guidance has waned, leading to forecast cuts. Boral derives 50% of its earnings from housing and both US and Australian housing are in decline, Australia notably, and non-residential building carries downside risk if sentiment continues to deteriorate.
The broker has cut its target to $5.00 from $6.94 ahead of the company’s result but retains Neutral, noting the market has already marked the stock down.
Sector: Materials.
Target price is $5.00.Current Price is $4.88. Difference: $0.12 – (brackets indicate current price is over target). If BLD meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
