Adbri (ABC) had been seemingly priced for a downgrade, which didn’t happen, based upon today’s Macquarie conference update.
Wet weather is/was affecting NSW, but otherwise price increases and strong demand elsewhere. Underlying earnings still forecast to grow in 22.
For a business that’s pretty cash generative, and at a substantive discount to market, that’s none-to-bad. Stock was a former market darling, now in the sin bin, reality is, like most things, simply somewhere in the middle.
We see it as a QGARP-y stock (Quality Growth at a Reasonable Price) with an emphasis on the Reasonable Price bit.
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