Street View: Brokerages raise PT on Australia's Reliance Worldwide after strong FY24 results

Reliance Worldwide

20/08/2024 20:30

** Analysts hike PT on Australia's plumbing solutions
provider Reliance Worldwide Corp  RWC.AX  following its strong
FY24 results, reported on Tuesday
    ** RWC ended 9% higher at A$5.12 on Tuesday, its best day
since November 2020
    ** RWC's FY24 adj. NPAT of $146.9 mln beat Visible Alpha
consensus of $145.8 mln, with net sales of $1.25 bln also
beating consensus by a small margin
    
    UPBEAT ON RECOVERY GREEN SHOOTS
    ** Citi hikes PT to A$5.85 from A$5.20; says RWC is its
preferred pick in the sector as its "plumbing jobs are less
discretionary"
    ** Jefferies lifts PT to A$5.91 from A$5.40; says RWC will
be insulated from any demand risks, given its R&R exposure vs
remodelling exposed firms
    ** Morningstar says its FY25 EBIT view of $220 mln, vs
$214.5 mln in FY24, assumes recovery in discretionary repair
spending in 2H25, in-line with interest rate cuts in the U.S.
and Australia
    ** Fourteen of 16 analysts rate RWC "buy" or higher, one
"hold" and one "sell"; their median PT is A$5.60 – LSEG data

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