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FBU - Morgan Stanley rates the stock as Equal-weight

PUBLISHED

2020-05-21

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Trading has been in line with expectations until the lockdowns, which have caused considerable disruption, particularly in the NZ business.

Morgan Stanley notes the company has provided bearish medium-term forecasts for both NZ and Australian construction activity and is bracing for a meaningful impact on earnings despite efforts to reduce costs.

Equal-weight rating maintained. Target is reduced to $3.59 from $4.40. Cautious industry view.

Sector: Materials.

Target price is $3.59.Current Price is $3.08. Difference: $0.51 - (brackets indicate current price is over target). If FBU meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).