Brickworks' property sale positive for its business- Morningstar

Brickworks

15/12/2022 20:15

** Morningstar views brick manufacturer Brickworks Ltd's
 BKW.AX  sale of its Oakdale East stage 2 property as a
"positive development for the business"
    ** Raises fair value estimate for Brickworks to A$27.50 from
A$26.10
    ** Co on Thursday completed sale of its Oakdale East stage 2
property into its industrial JV trust with Goodman Group
 GMG.AX  for A$301 mln ($201.64 mln)  urn:newsml:reuters.com:*:nASX29l6CV
    ** Morningstar says the property sale accelerates co's
diversification of earnings away from cyclical exposures of U.S.
and Australian housing inherent in its brick manufacturing
business 
    ** "Expected developed land value of Industrial JV Trust and
rental growth is also beneficial as it underwrites the value of
Brickworks' property division and increases group earnings
stability"- Morningstar
    ** Four of eight analysts rate the stock "buy" or higher,
three "hold" and one "sell"; their median PT is A$24.65 –
Refinitiv data
    ** As of last close, stock was down 8.6% this year
($1 = 1.4928 Australian dollars)
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))