"Morgans rates REH as Reduce (5) -Despite the subdued macroeconomic backdrop, the 1H result for Reece came in ahead of Morgans forecasts due to higher-than-expected earnings growth for A&NZ and the US.
The broker highlights a 60bps rise in the group earnings (EBITDA) margin to 11.6%, while the return on capital employed (ROCE) measure rose by 80bps to 16.1%.Management anticipates a softening 2H environment for A&NZ in the 2H.Morgans remains cautious on the outlook in A&NZ and the US and believes Reece is overvalued.
The Reduce rating is kept, while the target rises to $22.10 from $15.50 on earnings upgrades and a financial model roll-forward.
Target price is $22.10 Current Price is $28.50 Difference: minus $6.4 (current price is over target)."
Nice to see a broker give a target price in the $20+ range
Ann: Half Yearly Report and Accounts, page-24
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$25.80 |
Change
0.200(0.78%) |
Mkt cap ! $16.66B | |||
| Open | High | Low | Value | Volume |
| $25.39 | $25.95 | $25.38 | $14.08M | 549.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 6599 | $25.79 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.81 | 661 | 2 |
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| Last trade - 16.10pm 20/06/2024 (20 minute delay) ? |
| REH (ASX) Chart |