Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fletcher stock upgraded by First NZ on NZ, Aust building

Fletcher stock upgraded by First NZ Capital on NZ, Australia building, cost cutting

Feb. 18 (BusinessDesk) – Fletcher Building, the biggest company on the NZX 50 Index, was upgraded by First NZ Capital because of a pickup in the building sector in Australia and New Zealand and the benefits of its cost cutting programme.

The brokerage lifted its price target to $10.25 from $9 and raised its rating to ‘neutral’ from ‘underperform’. Auckland-based Fletcher is scheduled to release its first-half results on Thursday and First NZ Capital is forecasting a 16 percent increase in earnings before interest and tax to $304 million.

“Our expectation is for a more positive trading outlook commentary since its AGM guidance four months ago,” analysts at the brokerage wrote in a report.

At the annual meeting last October, Fletcher chairman Ralph Waters said conditions in the Australian market were expected to remain flat, with some pickup in New South Wales, offset by subdued demand in Victoria and a decline in investment in the mining sector.

The First NZ Capital research says building approvals jumped 23 percent in the second half of 2013 and the recent acceleration in value of residential work approved “promises considerable pent-up growth in the next 12 months.” Non-residential approvals had also increased.

In New Zealand, a pickup in net migration would help underpin growth in new house and apartment building consents, with “some signs of activity spreading beyond Auckland and Christchurch.”

Infrastructure work is expected to pick up in late 2014 or early 2015 and there are expectations the Treasury’s estimated $40 billion cost to rebuild Christchurch will be exceeded, the brokerage said.

“It would not surprise us if the next estimate reaches $45 billion to $50 billion,” it said.

The shares rose 0.5 percent to $9.59 and have gained about 12 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news