Morningstar tempered but positive on Aussie building materials maker Boral

Boral

01/11/2023 19:17

** Analysts at Morningstar see near-term headwinds for
Australian building materials maker Boral Ltd  BLD.AX  coming
from impact on high interest rates on construction activity
    ** Brokerage cuts fair value estimate by 3% to A$4.25
    ** Says modest downgrade for BLD includes a slightly more
tempered while still positive view on the construction cycle
    ** Adds BLD cost base is being challenged by high input cost
in energy, labour, transportation
    ** However, brokerage sees medium-term margin improvement as
inflation wanes
    ** Forecasts EBIT margin improvement to around 12% by FY28
    ** Also sees green shoots from strong pipeline of
infrastructure construction activity
    ** Forecasts annual revenue growth of 3.7% to FY28; expects
a meagre 2 Australian cents dividend in FY24
    ** Stock up 55.7% YTD, as of last close 

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))