Peter Quinton, our Head of Research Services, advises a BUY recommendation on CSR Limited (CSR)
Peter Quinton, our Head of Research Services, advises a BUY recommendation on CSR Limited (CSR). Amongst division within the analyst community on this stock, Quinton believes there are a number of positive catalysts for CSR on the way. CSR's building product division is highly leveraged to the RBA's forecast pick up in dwelling construction activity. CSR and Boral recently announced a merger of their brick operations, and CSR could possibly sell its aluminium interest. We expect the group to report a fiscal 2014 net profit increase of ~110% and project growth of over 70% to $117.1m in fiscal 2015. Their balance sheet is exceptionally strong with net debt/shareholders' funds of a miniscule 2% and an interest cover (EBIT) of 122.6 times. All up, there is good scope for further share price gains over the next 12 months. Our latest Investor Report is available to clients via our website (VIEW LINK)
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