Jefferies says Reliance Worldwide's forecast is positive, ups price target

Reliance Worldwide

19/02/2024 21:48

(Updates with Citi notes)
    ** Jefferies says Reliance Worldwide's group forecast
 RWC.AX  is "positive given concerns on EMEA, offset by
Americas"
    ** RWC logged HY results, declared on-market share buyback
of $17.8 mln
    ** Also forecast FY24 net interest expense at $26 mln to $29
mln
    ** Added FY24 revenue will be down by low-single-digit
percentage points vs FY23
    ** Jefferies says, "interest cost guidance was positive in
our view, given debt increase in 2H24 for Holman acquisition"
    ** Brokerage expects acquisition of Holman industries to
drive meaningful upside in APAC with clear strategic value
    ** Jefferies maintains "buy" rating on strong operational
performance & execution, raises PT to A$5.40
    ** Citi says co's HY adjusted EBITDA of $124.8 million beat
visible alpha consensus
        ** Adds "sales were relatively in line with
expectations"
  
        ** Upgrades to "buy" rating and hikes price target to
A$5.45
  
    ** 11 of 15 analysts rate the stock "buy" or higher, four
"hold"; their median PT is A$4.85 – LSEG data

    



 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Lisa
Shumaker and Leslie Adler)
 ((Rajasik.Mukherjee@thomsonreuters.com;))