CS cuts PT on New Zealand's Steel & Tube Holdings, cites revenue growth headwinds

Steel & Tube Holdings

19/11/2019 04:06

** Credit Suisse cuts PT on stock of Steel & Tube Holdings
Ltd  STU.NZ  to NZ$0.87 from NZ$1.03; maintains "neutral" rating
    ** Brokerage says although the steel fabrication services
provider has made good progress on cost-out initiatives, revenue
growth and gross margin recovery have remained elusive
    ** With construction seemingly coming off peak levels,
heightened competitive intensity look set to continue over the
near-term as participants compete in a shrinking market - CS
    ** CS analysts, however, note that Steel & Tube remains
well-capitalised with low debt and has adequate capacity to
weather any short-term market weakness
    ** Shares rise as much as 3.8% to NZ$0.82, mark their
biggest intraday pct gain since Oct 21
    ** More than 186,000 shares change hands, compared with
30-day avg volume of about 112,000 
    ** As of last close, stock down more than 35% this year 

 (Reporting by Aby Jose Koilparambil in Bengaluru)
 ((abyjose.koilparambil@thomsonreuters.com))