Citi, Jefferies hike PT on Australian cement maker Adbri; upbeat on outlook

Adbri

29/08/2023 20:26

** Analysts at Jefferies and Citi hike their price targets
on Australian construction materials firm Adbri Ltd  ABC.AX  on
macroeconomic tailwinds, higher pricing assumptions, and
continued share value momentum
    ** ABC on Tuesday logged 12.8% jump in 1H23 underlying NPAT
to A$52.1 mln ($33.73 mln), and forecast 2H23 operating earnings
moderately higher vs 1H23
    ** ABC expects to spend between A$330 mln and A$350 mln in
FY23; shares finished 14.6% after the announcement
    ** Jefferies upgrades rating to "hold" from "underperform",
hikes PT to A$2.30 from A$1.40
    ** Brokerage believes earnings momentum will continue into
2H23 and into FY24; says pricing and backlog assists outlook
    ** Citi hikes PT to A$2.25 from A$1.50, retains "sell"
rating
    ** Citi lifts FY23-25 NPAT expectations marginally on high
interest rates likely offsetting growth
    ** Two of 14 analysts rate ABC "buy" or higher, eight "hold"
and four "sell" or lower; median PT is A$2.21 – Refinitiv data

($1 = 1.5444 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))