Australia's Brickworks falls; Citi says stock trading at a discount

Brickworks

24/03/2025 02:58

** Shares of brick manufacturer Brickworks BKW.AX fall 1.1% to A$23.670

** Citi says BKW trading at a ~10% P/E ratio discount to ASX Industrials .AXNJ, although the stock has traded in-line with index historically

** Including day's moves, stock down ~7.5% YTD vs 1.5% rise in AXNJ

** Citi says BKW trading at a discount despite falling interest rates driving a positive outlook for building products and property

** Brokerage believes outlook is improving with rate cuts driving demand recovery despite tough near-term environment for building products given slowing residential activity

** Retains "buy" rating and PT of A$31.60

** Stock rated "buy" on average, median PT at A$29, as per data compiled by LSEG

 (Reporting by Manasi Dasa in Bengaluru)

 ((Manasi.DasaSundeep@thomsonreuters.com;))