"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
Add REH (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$25.84 |
Change
-0.730(2.75%) |
Mkt cap ! $16.69B | |||
| Open | High | Low | Value | Volume |
| $26.25 | $26.36 | $25.84 | $8.127M | 312.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1393 | $25.84 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.87 | 296 | 1 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
|
|||||
|
Last
$25.90 |
Change
-0.730 ( 2.94 %) |
||||
| Open | High | Low | Volume | ||
| $26.24 | $26.35 | $25.88 | 23146 | ||
| Last updated 15.59pm 14/06/2024 ? | |||||
| REH (ASX) Chart |