Citi confident on Australian co CSR on positive outlook

CSR

07/07/2022 02:21

** Citi cuts price target on building products manufacturer
CSR Ltd  CSR.AX  to A$5.80 from A$6.40, but retains "buy" rating
    ** Brokerage cuts price target on "broad-based market
declines" but remains confident in CSR's macro outlook
    ** CSR on June 30 announced a A$100 mln ($67.81 mln) share
buyback, reaffirmed outlook for FY23, and said its building
products business continues to perform well (https://bit.ly/3utamxi)
    ** Citi expects share buyback to be 2%-4% earnings per share
(EPS) accretive per current share price
    ** Brokerage says a weak housing market could hurt CSR's
margins, with high energy costs also potentially a headwind
    ** Citi hikes its FY23 EPS view by 2.1% to 46 Australian
cents per share, and for FY24 by 4.1% to 47.8 AU cps
    ** Six of 10 analysts rate the stock "buy" or higher, while
four rate it "hold"; their median PT is A$6.30 – Refinitiv data
    ** CSR down 30.3% this year, as of last close, vs a 11.4%
decline in the ASX 200 benchmark index  .AXJO  

($1 = 1.4747 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))