REECE LIMITED (REH)
Share Price Analysis and Chart

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25/08/2026

5

Sell

$15.00

-10.34%

Post another look, UBS lifts the target price to $15 from $14.70.

Management offered  no quantitative FY27 guidance, but expects a solid A&NZ activity pipeline to support 1H27 momentum, while US growth is expected to remain modest as residential new construction remains challenging.

The broker forecasts FY27 sales growth of 7% in A&NZ, supported by the strong 2H26 volume run-rate and improving housing approvals, while US sales are forecast to rise 4% as non-residential activity proves more resilient.

Reece plans to continue investing in the US network with 15-20 new branches annually. The analyst sees potential for US housing demand to be approaching a bottom. Sell rating retained. EPS forecast for FY27 and FY28 lowered by -4% and -7%, respectively.

First read: Strength in A&NZ helped offset continued weakness in the US, leaving Reece's FY26 result broadly in line with expectations, with EBIT down -3% y/y and 1% ahead of consensus, UBS explains.

A&NZ revenue rose 8% y/y, while US EBIT fell -17% y/y as residential construction remained subdued and investment in network expansion continued.

Stronger-than-expected cash flow and a lower net debt position were notable positives.

Looking into FY27, a solid A&NZ activity pipeline should support 1H momentum, while management's expectation for only modest US growth is softer than consensus and reflects ongoing weakness in residential construction.

Sell. Target $14.70.

FORECAST
UBS forecasts a full year FY27 dividend of 22.00 cents and EPS of 51.00 cents.
UBS forecasts a full year FY28 dividend of 25.00 cents and EPS of 62.00 cents.

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25/08/2026

2

Overweight

$16.30

-2.57%

Jarden maintains its Overweight recommendation for Reece with an unchanged target price of $16.30 following an FY26 financial result where group EBIT reached $534m, coming in broadly in line with consensus expectations.

Group revenue grew to $9,378m, supported by a solid performance in Australia and New Zealand where EBIT reached $360m on the back of supportive top-line growth.

The United States segment delivered EBIT of $174m in line with consensus, while management raised its US organic store opening guidance to between 15 and 20 stores.

Management notes a solid activity pipeline to support the first half of FY27, though potential deterioration in lead indicators across Australia and New Zealand remains a risk alongside continued softness in the United States residential market.

The broker's estimates indicate solid earnings delivery with reported earnings per share of 49.5c, positioning the company well despite a cautious outlook.