Boral (BLD) – Hold or Sell?

Following Boral recent update, the stock has tumbled a further 7%. Being a long term holder of the stock, not sure if we should cut and run or hold on for the long haul? Would appreciate your opinion on the stock.

A: Boral (BLD) has had a poor run – the latest “financial irregularities” in its North American business raising distinct issues around management credibility.

 

I would be inclined to cut as I don’t think the market will re-rate in the short term  – but I don’t know what the break-up value is. At some point, Boral must also itself become a takeover target.

 

As for the brokers, consensus target price is $4.59 – range of estimates from a low of $4.25 to a high of $4.90.


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