Morningstar keeps fair value estimate on Australia's Brickworks' leadership change

Brickworks

02/04/2024 19:46

** Analysts at Morningstar do not see a meaningful strategic
change for Brickworks'  BKW.AX  CEO and managing director
transition
    ** Brokerage keeps fair value estimate of A$31.00/shr
unchanged for construction materials supplier
    ** Morningstar expects building products earnings before
interest and tax (EBIT) will grow at a modest 2% compound annual
growth rate over next five years
    ** Analysts see BKW's operational strategy for its building
products segment is to reinforce it as the lowest-cost brick
manufacturer in Australia and North America
    ** As a cyclical business, we view Brickworks' strategy to
continuously improve unit costs positively - Morningstar
    ** Two of eight analysts covering the stock rate it "buy" or
higher, one "sell" and five "hold"; their median PT is A$29.50 -
LSEG data
        ** Stock has risen 1.9% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))