Jefferies raises PT on Australia's Boral on higher construction demand

Boral

30/11/2022 05:52

** Jefferies hikes price target on construction materials
firm Boral Ltd  BLD.AX  to A$3.30 from A$2.90 due to strong
demand in roads, highways, bridges and subdivision
    ** Co shares end at A$3.030, down 0.33% from Tuesday's close
    ** New PT is at an 8.9% premium to stock's last close on
Wednesday
    ** Jefferies expects BLD revenue to be supported by 3% and
2% increase in top-line price in FY24 and FY25, respectively
    ** Broker expects BLD's divisional admin costs to fall to
4.4% of revenue in FY23 and corporate costs decline to A$18 mln
($12.06 mln) 
    ** However, Jefferies sees headwinds from higher energy
costs and deteriorating residential cycle
    ** Two of 11 analysts rate the stock "buy", four "hold" and
five "sell" or lower; their median PT is A$3.0 - Refinitiv Data
    ** Boral stock down 15.2% this year, as of last close
 
   ($1 = 1.4925 Australian dollars)
 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))