Jefferies sees Boral's earnings skewed to H2 on materials pricing gains

Boral

05/02/2023 20:13

** Jefferies says construction materials maker Boral Ltd's
 BLD.AX  fiscal 2023 EBIT skewed to H2 as record rainfall during
H1 could impact earnings
    ** "Improving cost structure and real pricing gains underpin
our H1 expectations" -broker
    ** Adds that momentum from higher materials prices should
carry well into H2 and sees material sequential improvement in
the outlook commentary for H2
    ** Says H1 is a period of change and a growing pipeline and
sees Australian EBIT of A$98 mln ($68 mln) significantly ahead
of prior half's A$35 mln
    ** Broker sees Australian construction activity in 2023
broadly flat versus prior year due to impact from excessive
rainfall
    ** Expects H1 total revenue of A$1.61 bln, down 32% y/y;
EBITDA of A$89 mln, down 62% 
    ** Co reports first-half results on Feb. 8
    ** Two of 11 analysts rate the stock "buy", five "hold" and
four "sell" or lower; their median PT is A$3.30 - Refinitiv
Eikon data
    ** Stock up 23% YTD, fell 19% in 2022
    ($1 = 1.4453 Australian dollars)
 (Reporting by Savyata Mishra in Bengaluru; editing by Jason
Neely)
 ((Savyata.Mishra@thomsonreuters.com))