Intelligent Investor

Downgrading Brickworks

With Brickworks share price up, it's time to downgrade.
By · 7 Mar 2018
By ·
7 Mar 2018 · 1 min read
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Recommendation

Brickworks Limited - BKW
Buy
below 14.00
Hold
up to 20.00
Sell
above 20.00
Buy Hold Sell Meter
HOLD at $15.17
Current price
$26.69 at 16:40 (19 April 2024)

Price at review
$15.17 at (07 March 2018)

Max Portfolio Weighting
6%

Business Risk
Low

Share Price Risk
Medium-Low
All Prices are in AUD ($)

The building boom was supposed to be over. Consensus opinion suggested that the greatest construction boom in a generation peaked last year and would now subside, yet the latest data from the Australian Bureau of Statistics surprised on the upside with dwelling construction still exceeding expectations. It looks like the boom still has legs.

That may explain the share price rise of Brickworks which has risen comfortably above our Buy price. We've explained our investment case in Deconstructing Brickworks and, if the business should fall back into value territory, we would consider upgrading again. With price and value where they are, however, we're downgrading to HOLD.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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