Citi raises Brickworks' PT on near-term cost savings forecast

Brickworks

21/03/2024 21:44

** Citi raises Brickworks'  BKW.AX  price target on
expectations of cost savings in the near term from
simplification of the business 
    ** Brokerage raises PT by 7% to A$37.5 for the Australian
brick manufacturer, retains "buy" rating
    ** 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 in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))