Australia's Reliance Worldwide jumps as Jefferies lifts price target on valuation appeal
BUZZ-Australia's Reliance Worldwide jumps as Jefferies lifts price target on valuation appeal Updates
** Plumbing products maker Reliance Worldwide's shares RWC.AX rise as much as 4.5% to A$3.72, on track for biggest intraday gain in a week
** Jefferies hikes PT by about 11% to A$4.20, maintains "buy"
** Brokerage highlights cheap valuation, minimal balance sheet impact from weak macro conditions, strong cash flow that could fund future M&A
** But flags capacity rationalisation in APAC, including the closure of Melbourne plant, as evidence of more challenging growth options in region over near term
** Adds, management controlling controllables at low point in the cycle, but needs a recovery in U.S. housing repair, renovation market
** Nine of 15 analysts rate stock "buy" or higher, 6 "hold"; mean PT A$4.27 – LSEG-compiled data
** Stock down 5.4% YTD
(Reporting by Shruti Agarwal and Kumar Tanishk in Bengaluru)
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