BKW hit a fresh all-time high this week, a narrative being enjoyed by a number of ASX stocks. This is one company that doesn’t report until late March, but it has enjoyed the excitement generated by a number of takeover bids reining in on its peers. In line with the sector, BKW has also benefitted from the anticipated pick up in earnings compared to last year as cost pressures start to subside, although our concern is again plenty of good news is built into its share price. Valuation remains the issue after the company’s strong advance since mid-2022. Plus, we have the complexity of its 26.13% stake in Soul Patts (SOL), a quality holding but one that has a major bearing on BKW’s share price – SOL owns 43.07% of BKW.
- We prefer the cleaner/simpler alternatives to gain exposure to ongoing strength in the Building Sector.
MM is neutral BKW above $29
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