Citi 'cautious' on Australian Reliance Worldwide's share buyback on rising debt costs

Reliance Worldwide

16/03/2026 18:29

** Citi says higher cost bank debt 'modestly' offsets Australian Reliance Worldwide Corporation's RWC.AX stock buyback

** On Monday, plumbing solutions provider said it will undertake further on-market share buyback targeting A$120 million ($84.72 million)

** Brokerage, however, notes incremental bank debt to fund buyback appears "relatively expensive"

** Expects only ~2-3% earnings per share (EPS) accretion on buyback despite low share price

** Maintains 'Neutral' stock rating, keeps PT at A$3.9

** Seven of 15 analysts rate the stock "buy" or higher and eight "hold"; their median PT is A$4.2 – LSEG data

** Stock down 19.2% YTD

($1 = 1.4172 Australian dollars)

 (Reporting by Aamir Sheik Khalid in Bengaluru)

 ((Aamir.SheikKhalid@thomsonreuters.com))