Margin growth at Australia's Reece to be hit by competition, Morningstar says
28/06/2026 19:50
BUZZ-Margin growth at Australia's Reece to be hit by competition, Morningstar says ** Morningstar says while construction supplies distributer Reece REH.AX had high margins in Australia and New Zealand amid low competition, it doesn't expect much growth beyond cyclical recovery with more focused competitors
** Investment research major thinks shares to be overvalued, sees lower EBITDA margin improvement than markets
** Lowers fair value estimate by 2% to A$10.30 on weighted average cost of capital and time value of money assumptions
** 14 analysts rated "hold" on average, with median price target A$15.45, LSEG-compiled data show
** Year to date, shares are up 24.9%, last closing at A$16.8
(Reporting by Nichiket Sunil in Bengaluru; Editing by Mark Porter)
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