ABC - Morgan Stanley rates the stock as Equal-weight
PUBLISHED
2022-04-14
Content
Morgan Stanley downgrades its rating for AdBri to Equal-weight from Overweight following unfavourable construction conditions in the March quarter resulting from above-average rainfalls across Australia.
The broker highlights competitor Boral ((BLD)) has already downgraded earnings due to the weather and rising energy costs. The target price falls to $3.40 from $3.60 as Morgan Stanley's FY22 earnings (EBIT) fall by -5%. Industry view: In line.
Sector: Materials.
Target price is $3.40.Current Price is $3.02. Difference: $0.38 - (brackets indicate current price is over target). If ABC meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).