Just like Adbri, Boral has been guiding towards strong price growth and which they believe (combined with further cost control) will offset the impact of significant total cost inflation, with energy levels expected to remain elevated. This is a big ‘if’ and as we saw with ABC yesterday, price increases are proving more difficult than first thought, although Boral is now a Kerry Stokes led company and this will give the market some more confidence in what they can achieve on this front.
BLD’s share price performance is not a clear-cut picture because of its $2.65 capital return in March but the stock has continued to slip lower since and we so no reason to chase this particular building products business in the short term.
- We continue to prefer both CSR & JHX to BLD.
MM is neutral BLD
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