Citi cuts Reliance Worldwide FY24 view, PT on UK housing pressure

Reliance Worldwide

13/07/2023 03:30

** Analysts at Citigroup predict headwinds facing United
Kingdom's housing market will affect Australian plumbing
products maker Reliance Worldwide Corp's  RWC.AX  FY24
    ** Brokerage cuts price target to A$4.05 from A$4.10,
retains neutral rating
    ** Citi cuts its FY24 EBITDA estimates by ~4%
    ** Expects FY23 core net profit of $147.8 mln, down 2.3%
from prior view, and $149.8 mln for FY24, down 4.6% from prior
view
    ** In FY22, UK contributed 15.3% of RWC's total revenue of
$1.17 bln
    ** RWC up 0.6% at A$4.015 as at 0159 GMT; up 34.80% this
year, as of last close, vs a 1.4% increase in the ASX 200
benchmark index  .AXJO 
    ** 11 of 17 analysts rate RWC "buy" or higher, and six
"hold"; median PT is A$4.28 – Refinitiv data

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))