Jefferies upgrades view on Australia's CSR on upbeat volumes outlook

CSR

31/10/2023 24:31

** Analysts at Jefferies upgrade rating on Aussie building
products maker CSR  CSR.AX  to "hold" from "underperform"
    ** CSR shares trading 1.3% higher at A$5.61, their highest
since Oct 25
    ** Brokerage hikes PT to A$5.20 from A$4.50
    ** Jefferies expects Building Products (BP) - CSR's top
revenue generating segment - to deliver record EBIT in 1H24
    ** Says BP 1H24 EBIT view based on expectation of "sustained
volumes from constrained Australian construction pipeline"
    ** "Pipeline strength to see CSR order book maintained 
through to year ending March (YEM) FY24 & provides enhanced
manufacturing cadence", says Jefferies 
    ** Sees downside risk for FY24 Aluminium EBIT outlook on
cost pressure 
    ** CSR passed peak building products pricing power with
outlook for volume and mix from FY25 less beneficial - analysts
at Jefferies
    ** Stock up 17.6% YTD, as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))