Citi sees challenging outlook for Australia's Boral in weak housing market

Boral

24/08/2022 01:06

** Citi sees a challenging outlook for Australia's Boral Ltd
 BLD.AX  as a weak housing market, extreme weather and rising
input costs will likely weigh on the building firm's earnings
    ** Says the residential housing market will likely slow in
the near to mid-term future, with the multi-family
pre-feasibility study done at a lower building cost 
    ** Brokerage says infrastructure development will likely get
delayed due to supply and funding constraints 
    ** "While the reversal of one-offs will likely assist FY23e,
we expect the environment will likely get tougher before it gets
easier"- Citi 
    ** Says the first half of 2023 looks "particularly
challenged" due to a partial period of price increases 
    ** Two of 11 analysts rate the stock "buy", four "hold" and
five "sell" or lower; their median PT is A$3.00 – Refinitiv data
    ** Stock down 17.5% this year, as of last close

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))