Boral gives back most of Friday’s gain
Stock
Boral (BLD) $5.31 as at 03/06/2019
Event
Construction materials name Boral has struggled today, underperforming even a soft market and giving back most of Friday’s move higher as investors grapple with the company’s investor presentation from the end of last week.
Shares in the name originally moved higher, but are struggling today with market commentators stuck on one key aspect of the presentation. The company did not give updated guidance for the full year as, but did say that the second half is “broadly in range of our expectations including property on track to deliver around $30 million in FY2019, as guided; as always we need a strong June to finish the year.” The company also noted that infrastructure activity growth had begun to slow while residential work remained weak.
So despite maintaining guidance, the FY19 result will come down to the wire, and only stumble over the line if June is strong. We see this as unlikely to hit the target, with a lack of construction activity around Australia Boral is unlikely to see the strong month it needs to meet or beat at the full year result.
Boral (BLD) Chart
Market Matters Take/Outlook
