The market greeted the announcement of $BLD‘s restructuring plans enthusiastically, lifting the share-price by 35c on the 16th January 2013 to $4.80.
Since then profit-taking has seen the share-price enter a consolidation phase which will probably be brief now that the ACCC has withdrawn its initial objection to the transfer of the NSW concrete masonry business to Austral, a company owned by Brickworks.
The expectation is that there is likely to be a second leg re-rating of the share-price equivalent to the first which was from approx $4.40 to $5. If the share price were to break-out to the upside of the consolidation pattern, the target would be $4.80 plus 60c or $5.40.
Please note that this view does not constitute a recommendation to buy or sell Boral shares.
- Boral bites the bullet (technicality.me)
- Boral says strong profits coming (nzherald.co.nz)
- Boral lifts first half profit guidance 48pc (news.com.au)