NZ's Fletcher Building slips; Jefferies upgrades to 'buy' on major M&A appeal

Fletcher Building

18/06/2025 24:44

** Shares of home builder Fletcher Building FBU.NZ slip 0.6% to NZ$3.21 in early trade

** Jefferies upgrades its rating and increases the price target for FBU, citing its "significant M&A appeal"

** Upgrades rating to "buy" from "hold", hikes price target to NZ$4.20 from NZ$3.10

** Brokerage sees co's assets primed for construction upswing, with unique NZ construction materials and building products positions providing major M&A appeal

** Adds that mid-cycle value is evident, with legacy issues largely being de-risked

** Jefferies suggests near-term cyclical risks may lower consensus estimates, but believes these are already factored into the 'depressed' valuation multiples

** Stock up 12.3% YTD, as of last close

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))