Goldman Sachs analyst Niraj Shah has maintained their bullish stance on RLLWF stock, giving a Buy rating on April 16.
Niraj Shah has given his Buy rating due to a combination of factors that suggest a positive outlook for Reliance Worldwide Corp. Ltd. Shah acknowledges the company’s unchanged financial year 2024 trading outlook, despite a projected slight to moderate decline in consolidated group sales. This performance stands in contrast to the previously forecasted 3% negative growth by Goldman Sachs and 4% negative growth according to Visible Alpha Consensus Data.
The reassessment of Reliance Worldwide’s financial prospects takes into account the implications of higher copper prices, which have increased by approximately 28%. Despite this cost pressure, the company has offset potential downsides through strategic price adjustments and the acquisition of Holman Industries. Shah projects an increase in the company’s EBITDA by 3-5% for financial years 2025 and 2026, while also raising the 12-month target price by 7% to A$5.35 per share, reinforcing the rationale behind the Buy rating.
Shah covers the Industrials sector, focusing on stocks such as Reliance Worldwide Corp. Ltd., Qantas Airways Limited, and Brambles Limited. According to TipRanks, Shah has an average return of 7.0% and a 56.52% success rate on recommended stocks.
In another report released on April 16, Jarden also maintained a Buy rating on the stock with a A$5.25 price target.
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Reliance Worldwide Corp. Ltd. (RLLWF) Company Description:
Reliance Worldwide Corp. designs and manufactures branded, high-quality plumbing products. Reliance operates in North American, European and Australasian plumbing product markets, with 70% of sales derived from the U.S. in fiscal 2018. Key products include pipe fittings and related pipe, control valves and thermostatic products. Reliance’s SharkBite-branded brass PTC plumbing fittings are a labour-saving innovation. Its disruptive entry into the plumbing fittings market in 2004 has provided strong growth for Reliance. Reliance’s SharkBite enjoys an estimated 90% share of the brass PTC plumbing fittings category. Reliance markedly increased its European market exposure through the acquisition of John Guest in 2018, a leading U.K. plastic PTC fitting and pipe manufacturer.
