Morningstar raises fair value estimate for Australia's CSR on takeover offer

CSR

22/02/2024 19:14

** Analysts at Morningstar raise their fair value estimate
for Australia's CSR  CSR.AX  to A$8.75 per share, after a
takeover offer for the company 
    ** The construction materials maker received a $9.00 per
share non-binding takeover offer from France's Saint Gobain
 SGOB.PA , valuing the company at A$4.30 bln ($2.82 bln), and
has resolved to pursue the proposal 
    ** Morningstar says the main driver for its estimate
revision is the updated outlook for CSR's building products
division, which contributes about 90% of group operating
earnings 
    ** Brokerage says there is a 75% chance of the deal going
through and is also positive on the long-term earnings power of
the business 
    ** Assigns "medium" uncertainty rating to the stock 
    ** Two of 13 analysts rate the stock "buy" or higher, nine
"hold" and two "sell" or lower; their median PT is A$6.60 – LSEG
data
    ** Stock has risen ~26.7% this year, as of last close


($1 = 1.5260 Australian dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))