Citi cuts PT on Brickworks but expects improving earnings profile

Brickworks

10/03/2022 24:12

** Brokerage Citi cuts PT on building products maker
Brickworks Ltd  BKW.AX  to A$25 from A$30, maintains "buy"
rating
    ** Co said in December that it expects H1 2022 property EBIT
between A$290 mln ($212.08 mln and A$310 mln  urn:newsml:reuters.com:*:nASX2nPqML
    ** Citi says BKW's 1H FY22 underlying EBIT will be boosted
by a property revision and forecasts EBIT of A$321 mln
    ** Brokerage expects an improving earnings profile in the
medium term from BKW's investment in Washington H Soul Pattinson
 SOL.AX  in FY22
    ** Says it remains positive on the robust outlook for
industrial rental income for co's Property Trusts given
structural shift towards e-commerce, and demand for industrial
property assets
    ** Says having diversified earnings streams, Brickworks
Australian building products segment is well placed, underpinned
by improving domestic housing outlook 
    ** Three of seven analysts rate the stock "buy" or higher,
three "hold", and one rates it "sell"; their median PT is
A$26.10 - Refinitiv data
    ** As of last close, stock has lost 14.8% this year
    
($1 = 1.3674 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))