Australia's CSR outperforms markets on robust shareholder returns - Morningstar

CSR

13/09/2023 20:57

** Analysts at Morningstar said Australia's CSR Ltd  CSR.AX 
is outperforming the broader market as the building products
maker's total returns to shareholders from the start of fiscal
2023 has almost touched 30% of its profitability  
    ** Brokerage says the company has provided robust returns
despite cyclical headwinds in the Australian housing
construction sector
    ** Morningstar retains a fair value estimate of A$5.50 for
CSR 
    ** "We assume a further A$40 million ($25.67 million) of
buybacks in fiscal 2024, with the remainder of the buyback
program, around A$20 million, to be repurchased in fiscal 2025,"
says Morningstar 
    ** Sees CSR's diversification into markets outside detached
dwelling construction as favourable
    ** Brokerage expects fiscal 2024 earnings before interest
and taxes (EBIT) of A$252 million, down 24% on fiscal 2023
    ** CSR up 25.7% so far this year, as of last close


($1 = 1.5584 Australian dollars)

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