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.
- We like the risk/reward toward FBU ~$4.30 but would leave some flexibility to add into another dip under $4.
MM is bullish towards FBU around the $4.30 level
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