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

Reliance Worldwide

19/02/2024 19:40

** Jefferies says the group forecast set by Reliance
Worldwide  RWC.AX  is "a positive given concerns on EMEA, offset
by Americas"
    ** Reliance posted half-yearly results and declared an
on-market share buyback of $17.8 mln
    ** It also forecast its FY24 net interest expense at $26-29
mln
    ** Reliance added revenue will be down by low single digit
percentage points in FY24 compared with FY23
    ** Jefferies says, "interest cost guidance was positive in
our view, given debt increase in 2H24 for Holman acquisition"
    ** The brokerage firm adds it expects the acquisition of
Holman industries, expected to complete in March 2024, to drive
meaningful upside in APAC with clear strategic value
    **Firm maintains "buy" rating on strong operational
performance and execution and raises price target to A$5.40
    ** 11 of 15 analysts rate the stock "buy" or higher, 4
"hold"; their median PT is A$4.85– Refinitiv data
    ** The stock has risen over 6% this year, as of last close

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com;))