Citi downgrades rating on NZ's Fletcher Building on muted recovery outlook

Fletcher Building

02/12/2025 18:49

** Brokerage Citi downgrades rating on New Zealand's Fletcher Building FBU.NZ to "neutral" from "buy"; keeps target price unchanged at NZ$3.50 per share

** Citi sees NZ housing market stabilising but warns recovery will be slow, citing elevated consents, high inventories and premium on new builds

** Cuts FY26 and FY27 EBIT forecasts by 7%, 5% respectively; says stock trades near valuation, limiting upside

** Six of 12 analysts rate the stock "buy" or higher, five "hold" and one "sell" or lower; their median PT is NZ$3.50, according to data compiled by LSEG

** Stock has risen 21.8% this year, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))