Brokerages cut earnings outlook for Australia's Reliance Worldwide on US tariff woes

Reliance Worldwide

06/05/2025 03:59

Updates with share moves, adds UBS and Jarden comments

** Reliance Worldwide Corporation RWC.AX falls 0.6%

** Citi cuts EBITDA estimate for FY25, FY26 and FY27 by 5%, 15% and 7%, respectively

** Changes PT to A$5.25 from A$5.9; retains "buy"

** Plumbing solutions provider warned of pressure on 2025 Americas sales amid worries over U.S. tariffs

** Citi says, "We expect estimates will continue to change as end tariff/macro picture becomes clearer"

** UBS trims FY26 EPS estimate by 20%; cuts PT to A$4.5 from A$5.6, anticipating "end-market uncertainty to continue to weigh on shares"

** Jarden downgrades FY25 and FY26 EPS estimate by 5% and 10%-15%, respectively

** But marginally hikes PT to A$4.8 from A$4.7, expecting lower tariff impact on co's earnings

** Stock rated "buy" on avg; median PT is A$5.18, per data compiled by LSEG

** RWC down ~19% YTD

 (Reporting by Jasmeen Ara Shaikh and Nikita Maria Jino in Bengaluru)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com))