Analysts cut PT on Australia's Reliance Worldwide after weak Q1 earnings

Reliance Worldwide

25/10/2022 19:54

** Citi analysts cut price target on Australia's Reliance
Worldwide Corp  RWC.AX  and said they expect the plumbing
products and services firm to continue to underperform
        ** Lowers PT to A$3 from A$3.80, maintains "sell" rating
  
    ** RWC said on Tuesday Q1 adjusted earnings before interest
and tax (EBIT) fell 8% to $50.9 mln, with adjusted EBIT margin
also down to 16.8%  urn:newsml:reuters.com:*:nASX3JJ3QW
    ** Citi says margins are disappointing with sales growth
expected to be tougher; downgrades EBIT estimate by 7%-9% across
FY23-FY25
    ** Analysts at brokerage Jefferies feel trading conditions
for RWC are hard but the business is not broken; upgrades stock
to "buy"
    ** Jefferies cuts PT to A$3.50 from A$4.20 as it expects to
see limited demand visibility as well as month-to-month
volatility
    ** Nine of 14 analysts rate the stock "buy" or higher, four
"hold" and one "sell"; their median PT is A$4.40 – Refinitiv
data
    ** Stock has fallen 50.4% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))