Building products company FBU rallied +3.1% on Thursday, potentially keying off James Hardies' (JHX) strong result earlier this week. The stock has been under pressure through 2023 due to litigation around plumbing issues in Perth with the Buckeridge Group of Companies (BGC) hanging over its head – as we know, markets hate uncertainty. The stock is reasonably priced, trading on a 10.8x P/E for 2024, compared to high-flying James Hardie (JHX), which is on x19.1. For good measure, FBU is forecast to yield 8.7% over the next 12 months.
FBU -8.64%: the dual-listed building products company traded for the first time since last Wednesday, spending the long weekend preparing a statement on faulty water pipes that have been causing issues. The issue pertains to plumbing products manufactured by Fletcher Building’s Iplex which were installed between 2017 and 2022.
Fletcher Building (FBU) makes a range of building material products including wood-fibre, cement, plasterboard, lumber and aluminium goods used in construction. It's operations are primarily focused in Australian and New Zealand.
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