Fletcher shares likely oversold: Forsyth Barr

Fletcher shares likely oversold: Forsyth Barr
About 50% of Fletcher's earnings are tied to home building. (Image: Supplied)
Jenny Ruth
Investors are too negative on the prospect for Fletcher Building’s earnings in the face of the housing market downturn, according to Forsyth Barr analyst Rohan Koreman-Smit.“We calculate a 40% decline in Ebit (earnings before interest and tax) from full-year 2023 levels is already priced in versus our forecast for a 22% decline,” Koreman-Smit said.“We acknowledge that the near-term outlook for residential activity is negative and Fletcher’s track record does not endear it to investors,” he said.In December, F...

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