Wienerberger confirmed at BUY, TP EUR 37 - Bottom-up perspective more constructive than top-down view
Despite a convincing results series, the stock has de-rated substantially ytd, which is attributable to the blend of gas supply uncertainty and weakening end-marketsWith record year FY 22e essentially in the books, all eyes turn to the expected slowdown in FY 23e. Despite the apparent headwinds fuelling a negative top-down assessment, to us the side-lining of the stock looks excessive and we think a more constructive view is warranted from a bottom-up perspective
Wienerberger envisages a decline of the European and North American new build markets by up to 5 up to -10% in FY 23e. Several reasons speak for a more muted sales impact at the group
Price discipline and self-help measures should counter volume loss and cost inflation. We also think that Wienerberger has exhibited in recent crises that cost structures can be adapted quickly.
We maintain the BUY rating with an unchanged target price of EUR 37
Wienerberger is a building materials group. Co.'s segments include: Clay Building Materials Eastern Europe, Clay Building Materials Western Europe, Pipes & Pavers Eastern Europe, Pipes & Pavers Western Europe, North America and Holding & Others. The Clay Building Materials Europe division covers activities in the areas of clay blocks, facing bricks and roof tiles. The Pipes & Pavers Europe division includes Co.'s business activities with plastic pipes, ceramic pipes and concrete pavers. The North America division covers activities in the areas of facing bricks, plastic pipes and concrete products. The Holding & Others division covers activities in the areas of clay blocks.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
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