What’s at stake: Fletcher Building is a major cap firm, listed on both the NZX and ASX. It is, however, significantly exposed to the residential market and the impact of a number of legacy projects.
Background: Fletcher Building has been in freefall on the NZX following another sharp earnings downgrade, and has effectively shed $1.4b in market capitalisation over a year that seen significant destruction of capital. With the trans-Tasman residential market looking soft and the company exposed to more margin pressure and seasonal shifts in demand, investment houses are downgrading the company ahead of its June results.
Main players: Fletcher Building, Forsyth Barr, Craigs Investment Partners, Nick Traber, Cameron Parker, Rohan Koreman-Smit, Paul Koraua.
Forsyth Barr has shifted gears on Fletcher Building, re-rating the stock down from outperform to neutral, after the company’s sharp earnings downgrade on Monday.
The firm has also reduced its 12-month NZX target price by a fifth to $3.80, though that remains above a $3.35 target allocated by
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What’s at stake: Fletcher Building is a major cap firm, listed on both the NZX and ASX. It is, however, significantly exposed to the residential market and the impact of a number of legacy projects.
Background: Fletcher Building has been in freefall on the NZX following another sharp earnings downgrade, and has effectively shed $1.4b in market capitalisation over a year that seen significant destruction of capital. With the trans-Tasman residential market looking soft and the company exposed to more margin pressure and seasonal shifts in demand, investment houses are downgrading the company ahead of its June results.
Main players: Fletcher Building, Forsyth Barr, Craigs Investment Partners, Nick Traber, Cameron Parker, Rohan Koreman-Smit, Paul Koraua.
