Citi raises Australia-based CSR's profit estimates on land sale

CSR

09/02/2022 20:39

** Citi Research raises its FY22 NPAT estimates on CSR Ltd
 CSR.AX  by 5% after it announced sale of 4.6 hectares of land
at its site at Badgerys Creek, New South Wales 
    ** Sale of land for A$20.7 mln ($14.86 mln) or A$450 per
square meter
    ** The Australian building products manufacturer said
following completion of sale, its FY22 Property EBIT is expected
to be ~A$46 mln, up from prior estimate of A$34 mln  urn:newsml:reuters.com:*:nASX7y7XKK
    ** "We continue to like CSR primarily for its exposure to a
residential detached cycle that we expect will last longer than
expectations" - Citi
    ** Citi retains "buy" rating, lowers PT to A$6.63 from
A$7.03
    ** Says PT includes A$1.30 per share value for property,
which has could present with further upside as residential and
industrial property values continue to rise 
    ** Eight of nine analysts rate stock "buy" or higher and one
"hold"; their median PT is A$6.80 – Refinitiv data
    ** CSR stock down 2% this year, as of last close
    

($1 = 1.3926 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))