Why is the stock price of Boral (ASX: BLD) so terrible?

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NS Boral Ltd (ASX: BLD) Stock prices have fallen into the red in recent weeks. At the time of writing, the share of construction materials suppliers has declined by about 2.8% since the beginning of November. They are currently trading at $ 6.23 per piece.

Benchmark for comparison S & P / ASX200 Index (ASX: XJO) lost 1.27% in the same time frame.

Let’s take a look at what has recently lowered Boral’s stock price.

Currently, emotions are low

Analysts at some investment companies are not very rosy about Boral’s stock outlook.For example, JP Morgan Think about profits Boral’s local construction materials business is at the “trough” level.

He also questioned whether management could implement a $ 200- $ 250 million transformation program in Australia. The company also points out Boral’s words about the $ 16 million hit from the July forced blockade.

JP Morgan is also uncertain whether Borals can recover lost volumes from these forced blockades. This is because we expect resistance of about $ 50 million in the first quarter.

Fellow investment bank UBS believes Boral may face challenges Regain core margins until the New South Wales housing market recovers.

UBS also pays attention Boral has recently made several sales, stating that streamlining the business could undermine the growth of the underlying business.

Jeffreys feels the same way, and Boral thinks he needs to reaffirm his debt portfolio. The company states that Boral has a total debt of US $ 1.25 billion across eight senior notes in the United States and has a maturity range from November 2022 to November 2030.

Remember that Boral will have to pay 3% to 4.58% coupons (interest) on these bonds on each date for the next eight years when the due date is due.

In connection with UBS’s remarks, Jeffreys states that there is likely no hedging against this debt given that Boral could withdraw completely from North America.

None of this suggests good news for Boral’s stock price. However, a wide range of sectors are also lagging behind.It was also a bumpy vehicle in the last three months, just as Boral removed it. S & P / ASX 200 Material Index (ASX: XMJ).

The index has fallen 14% since mid-August, but has recovered slightly in recent weeks. Nonetheless, this performance shows that investors are not exactly jumping into this sector.

Boral stock price snapshot

Despite last month’s headwinds, Boral stocks have returned about 22% over the past year. Boral’s share price has also risen 26% year-to-date.

This is above the return of about 10% of the benchmark index for the last 12 months.

Why is the stock price of Boral (ASX: BLD) so terrible?

Source link Why is the stock price of Boral (ASX: BLD) so terrible?

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