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Fletcher Building's Trading Update Broadly in Line With Consensus, Says Jefferies

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Fletcher Building's (ASX:FBU, NZE:FBU) latest trading update was broadly in line with market expectations, excluding property sales, according to a Wednesday Jefferies note.

The company said on Wednesday that it is moving to withdraw its credit rating at Moody's as the company has made progress in its transition to a more stable capital structure.

The company reported stable trading conditions in the fiscal second half, but remains cautious on the economic outlook for fiscal year 2027, which Jefferies said is sensible.

The investment firm said that near-term earnings growth is expected to be driven mainly by internal improvement initiatives, and the company remains well-positioned to benefit from any recovery in the New Zealand housing market.

Jefferies has a buy rating on Fletcher Building with a price target of NZ$4.

The company's Australian shares fell almost 1% in recent Thursday trade.

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