BLD

Boral was certainly an improvement.

But from what I can tell, highly cyclical margins at are midpoint…

…with commentary/guidance around recent conditions looking at bit flat, which makes sense given interest rates and a slowing economy…

and yet it trades at..well, lots, whatever ratio you look at. The line goes up and to the right.

Mgmt pointed to lagged impacts in pricing, plus some cost out, but the 20% hurdle to meet guidance does look sizeable.

Elsewhere in the call, they make the point that based on volumes they can see, things are a bit flat, and that might impact the first half, but second half 24 things like residential coming back, and social infrastructure coming through, alongside announced road projects, should get them there.

I suppose we doubt the resi piece, and we fear project cancellations due to rates and government funding (well, everyone’s funding!).

Not one for us.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

Receive our investment insights

Something went wrong. Please check your entries and try again.