First half earnings (EBIT) were in line with expectations. Sales were below Credit Suisse estimates, stemming from further deterioration in the market and customer de-stocking.
This was offset by an improvement in Methven, which the broker estimates delivered $49m in sales. The market is expected to improve in FY21.
The broker commends the cost initiatives, designed to maintain earnings targets. Neutral rating maintained. Target is raised to $3.65 from $2.90.
Sector: Capital Goods.
Target price is $3.65.Current Price is $3.98. Difference: ($0.33) – (brackets indicate current price is over target). If GWA meets the Credit Suisse target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
