09/02/2024 17:04

Boral (BLD) $5.86

BLD +8.32%: the building products company beat expectations, surging to long-term highs on a strong 1H result. Revenue was in line, however, EBIT was a strong ~25% beat to expectations, up 111% to $201m. While cost control was solid (SG&A +3% vs revenue +9%), the bulk of the beat came down to stronger than forecasted margins out of the quarry business while the other segments of their operation were broadly in line or a miss. Despite upgrading guidance for FY24 (EBIT guidance +4% vs previous expectations), the company is effectively guiding to a 2H miss given the strong 1H numbers announced today.

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19/12/2023 09:17

Boral Ltd (BLD) $5.06

BLD has recovered strongly in 2023, but moving forward, its main lever to improve margin recovery appears to be cost control, which can only go so far, and we believe the stock is very rich above $5, with the next 10% move feeling like a coin toss at best.

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10/08/2023 17:13

Boral (BLD) $4.74

BLD +8.47%: FY results were out for the building materials company, coming in well ahead of the market with a particular surprise on margins. Revenue grew 17% while EBIT more than doubled as EBIT margins climbed from 3.8% to 6.7% for the year.

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21/07/2023 09:11

Boral Ltd (BLD) $4.24

BLD remains one of our least preferred stocks in the sector plus it screens on the expensive side in our opinion requiring further operational improvements to justify a price of ~$4.25 - The company even flagged last month that inflation and cost pressures won’t come down anytime soon.

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26/05/2023 08:58

Boral Ltd (BLD) $3.99

BLD has bounced +68% from its October low although the chart pattern should be largely dismissed due to the significant capital return in 2022. BLD started FY23 with a better-than-expected 1H23 result, albeit with a very low bar following a tough FY22, but we believe the current share price implies significantly more progress is needed and requires Boral to achieve the upper end of its 10-12% EBIT margin target range. Hence the stock is “feeling tired” around the $4 area and we wouldn’t be considering going long at this stage.

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21/04/2023 09:23

Boral Ltd (BLD) $3.91

BLD’s share price has bounced an impressive +58% from its October 2022 low, yet another great example of the elastic band of pessimism stretching way too far, in this case, analysts forecasted rising interest rates would cause havoc in the building industry, and while there have been some painful failures things often don’t end up as bad as many foresee.

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08/02/2023 16:38

Boral (BLD) $3.97

BLD: +12.78%: A big beat from Boral today reporting 1H23 underlying net profit after tax (NPAT) of $57m, a big beat to the $37m consensus. It seems they had success pushing through higher prices while also growing volumes.

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27/01/2023 09:30

2 Boral Ltd (BLD) $3.56

BLD is not a clear-cut picture because of its $2.65 capital return in March but in a similar fashion to JHX the stock has started to regain some investor interest after its significant decline over the last 18 months i.e. some long-term bargain hunters appear to be circling. Boral has been targeting strong price growth which they believe (combined with further cost control) will...

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18/10/2022 09:45

Boral Ltd (BLD) $2.56

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.

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22/03/2022 22:58

Boral (BLD) $3.33

BLD -3.48%: provided FY22 guidance for the first time today which disappointed. EBIT is expected to come in between $145-155m for continuing operations for the full year, down from $181m last year. The severe weather events across Australia’s east coast is expected to have a ~$23m impact on earnings with lower volumes. Higher coal and diesel prices are also biting. They currently...

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