Focus on supply chain, pricing can benefit Aussie's CSR - Jefferies

CSR

29/07/2021 23:22

** Jefferies lowered the price target on CSR Ltd  CSR.AX   
to A$6.40 from A$6.50, maintaining a 'buy' rating, as a result
of volume constraints due to an extended lockdown in New South
Wales.
    ** Says it has trimmed revenue and EBITDA of the co to
A$2.27 bln ($1.68 bln) and A$332 mln, respectively.   
    ** Restrictions of mobility on labour and a halt in
construction activity within the COVID-19 hotspot could be
challenging, however, we believe a shortened holiday period
could make up for lost activity - Jefferies
    ** Says a focus on supply chain optimisation and pricing
realisation could benefit CSR and its peers James Hardie
Industries  JHX.AX  and BlueScope Steel  BSL.AX    
    ** We see a strong pricing outlook over the medium term,
which is underscored by strong demand for new detached and
rising investor interest in new multifamily properties -
Jefferies 
    ** Five of nine analysts rate the stock 'buy' or higher,
three rate it 'hold' and one 'sell'; median PT is at A$6.45 -
Refinitiv Eikon


($1 = 1.3517 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru)
 ((tejaswi.marthi@thomsonreuters.com))