ABC got caught in the downdraft of FBU yesterday ending the session down -4.6%, CSR wasn’t too far behind slipping -2.9%. This stock has been falling since 2018 and offers little confidence to us that they have turned the ship around but of course, never say never. James Hardie (JHX) is reporting quarterly numbers this morning, and first read through implies a soft update, with a ~6% downgrade to FY23 earnings guidance. Clearly there is still headwinds in building materials and this is being shown right across the sector, other than perhaps Boral (BLD).
- We have no interest in FBU at current levels but interestingly technically it looks good below its 2022 low, perhaps the nadir of a recession.
MM is neutral to bearish ABC around $1.75
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