0031 GMT - There's light at the end of a long tunnel for Fletcher Building, but Forsyth Barr isn't turning bullish on the stock. "Interest rates are being cut and forward indicators are improving, suggesting the downturn may be nearing an end," analyst Rohan Koreman-Smit says. Still, the pace of recovery remains a key question. Forsyth Barr points to market expectations for EBIT to rise by some 50% by FY 2027, noting the earnings rebound following the Global Financial Crisis was slower. Some sectors, such as non-residential construction, which accounts for around 25% of Fletcher's demand, may not have yet bottomed. "On the positive side, new management is taking action on costs and the upcoming June strategic review could unlock value," it says and retains a neutral call on the stock. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 19, 2025 19:31 ET (00:31 GMT)
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