Macquarie reviews housing data, noting approvals continue to strengthen and this will underpin strong growth into FY22. Home building approvals are the highest levels in 65 years.
Previously, Macquarie had expected a rebound in commercial was necessary for a further re-rating in the stock.
While forecasts for commercial business are conservative, commentary from the company indicates it is outperforming broader market numbers by targeting specific categories.
Macquarie upgrades to Outperform from Neutral and raises the target to $3.90 from $3.25.
Sector: Capital Goods.
Target price is $3.90.Current Price is $3.50. Difference: $0.40 – (brackets indicate current price is over target). If GWA meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
