Morningstar upbeat on Australia's Reliance Worldwide in long term despite tariff impact

Reliance Worldwide

06/05/2025 19:13

** Analysts at Morningstar are upbeat on Australian plumbing solutions firm Reliance Worldwide Corporation RWC.AX in the long term

** Brokerage expects "pricing power" and "product reliability" to support long-term earnings for Reliance Worldwide

** The company on Tuesday warned of pressure on 2025 Americas sales and cut its earnings outlook as it braces for the impact of U.S. tariffs

** Co added it will diversify product sourcing to outside China to mitigate tariff effects

** Brokerage expects average tariff rates to fall to 10% by fiscal 2028 for Reliance as it shifts sourcing from China

** Morningstar maintains its fair value estimate at A$5.70 per share, and calls the current share price materially undervalued

** The stock's last closing price was A$4.09 per share, down 18.5% YTD

(Reporting by Adwitiya Srivastava in Bengaluru)

((Adwitiya.Srivastava@thomsonreuters.com))