Morningstar raises fair value estimate for Reece, but says stock expensive
BUZZ-Morningstar raises fair value estimate for Reece, but says stock expensive ** Morningstar raised fair value estimate for Australia's Reece REH.AX to A$10.5; still well below its last close of A$16.9
** Sees modest margin growth for the plumbing products distributor from the ANZ segment, mostly from improved operating leverage on increased scale, with limited margin upside in the U.S. where it is a small player with more competition
** Expects mid-single-digit sales growth in ANZ in fiscal 2027, with management
alluding to a solid pipeline of activity over the first half, while sees US as more challenged with low-single-digit sales growth on price increases and demand from data center construction** Five of 13 analysts rate the stock "buy" or higher, six "hold", and 2 "sell"; their median price target is A$16.50, as per data compiled by LSEG
** Stock is up 26% YTD, as of last close
(Reporting by Anjali Singh in Bengaluru)
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