Building Material & Const

James Hardie made a soft start to the year but most brokers are not overly concerned while housing growth is solid. The bigger issue is the stock’s valuation.

Research from BIS Shrapnel suggests Australian dwelling commencements peaked in 2014-2015 and will gradually decline in coming years.

Housing bubble or no bubble?; employment data hard to fathom; wagering industry changes; more stable mobile growth; utilities outlook.

GWA has sold another business that was weighing it down, Gliderol. Brokers welcome a better domestic renovation focus.

Ukraine crops; REA Group vs Domain; WA miners counting costs; home builders buoyant; views on Nib Holdings, Yowie Group; outlook for shopping centres.

James Hardie’s FY15 result was strong, with a special dividend and buy-back announced, but many brokers consider the stock is well priced.

Booming residential construction and strength in equity markets and property markets are combining to provide outperformance for conglomerate Brickworks.

Continued erosion in FY15 earnings; bright outlook for residential builders; digital, NBN benefits; slowing sales for supermarkets; downshift in Oz dollar; limited windfall from lower oil prices.

Lower oil price a positive for Oz households; building stocks can still outperform; lower AUD is more probable than lower cash rate; and policy intervention likely in wagering.

Fletcher Building has provided FY15 guidance, with great emphasis on second half growth, and brokers suspect it might be tough going.