Analysts raise Brickworks' PT, Macquarie sees property earnings return to profit

Brickworks

21/03/2024 23:23

(Updates with share moves, Macquarie comments)
    ** Shares of Australia's Brickworks  BKW.AX  up as much as
1.3% to A$28.68
    ** Citi raises BKW's price target by 7% to A$37.5 on
expectations of cost savings in the near term from
simplification of the business, retains "buy" rating
    ** Macquarie hikes brick manufacturer's PT to A$27.30 from
A$25.15 on a higher property net asset value
        ** "We expect property earnings to return to profit in
2H FY24, but without significant realisations in the near term"
- Macquarie
  
    ** Citi says building products operating environment remains
challenging in Australia, but a simplification of the business
should deliver cost savings near term for BKW
    ** "We like BKW for the ability to realise value from
property being converted to industrial assets, where market
vacancy rates remain near all-time lows" - Citi
    ** Two of 8 analysts rate stock "buy" or higher, 5 "hold"
and 1 "sell"; their median PT is A$29.50 - LSEG
    ** Stock up 1.3% YTD, as of last close
 

 (Reporting by Ayushman Ojha and Sneha Kumar in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))