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Fletcher Building Ltd

FBU: XASX (AUS)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
—	—	—	Jnzcqjywv

Fletcher Building: Iplex Product Complaints an Overhang, but Our Fair Value Estimate Is Unchanged

Johannes Faul , Esther Holloway

Oct 13, 2023

We make no change to our fair value estimate of NZD 6.00 (AUD 5.50) for no-moat Fletcher Building. Since reporting in August 2023, we have included the total cost for Iplex of AUD 85 million pretax including the AUD 15 million already taken as a provision in fiscal 2023, which is in a range between two potential scenarios of industry costs provided by management. While our unchanged fair value estimate includes this lump sum we haven’t forecast the timing of it, with our unchanged earnings estimates excluding the expenses relating to Iplex.

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