Reliance Worldwide to face earnings pain from weak housing market -Citi

Reliance Worldwide

22/08/2022 20:15

** Citi warns Australian plumbing products and services firm
Reliance Worldwide Corp  RWC.AX  faces earnings hit from a weak
housing market; retains "sell" rating 
    ** Says lower pricing power, inventory de-stocking and
market volumes are hitting the housing market, and RWC will
track weakness in the repair, maintenance and improvement market
    ** RWC's business does not have enough pricing power, mix
benefits or new products to help it grow materially above a
declining market - brokerage 
    ** "We think RWC tracks closer to the market index than
other US peers given limited control around its distribution,"
Citi says, also warning of interest costs and forex headwinds 
    ** Nine of 13 analysts rate the stock "buy" or higher, three
"hold" and one "strong sell" or lower; median PT is A$5.00 –
Refinitiv data
    ** RWC stock down 28.1% this year, as of last close

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))