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Jefferies upgrades Fletcher Building stock rating on mid-cycle value

Published 18/06/2025, 09:58
Jefferies upgrades Fletcher Building stock rating on mid-cycle value
FBU
-1.82%

Jefferies upgraded Fletcher Building Ltd. (FBU:AU) (OTC:FCREY) stock rating from Hold to Buy on Wednesday, raising its price target to NZD4.20 from NZD3.10.

The research firm cited the company’s apparent mid-cycle value, fixed balance sheet, and largely de-risked legacy issues as key factors behind the upgrade decision.

Jefferies acknowledged that near-term cyclical risks could pose downside to consensus estimates but noted these concerns appear to be already reflected in the company’s depressed valuation multiples.

The firm highlighted Fletcher Building’s well-positioned assets for an uptick in construction activity as a positive factor in its assessment.

Fletcher Building’s unique positions in New Zealand Construction Materials and Building Products provide "significant M&A appeal," according to Jefferies’ analysis of the company’s market standing.

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