NZ's Fletcher Building drops to 5-month low after Morningstar flags weak housing market

By Reuters News

** Shares of construction materials firm Fletcher Building FBU.NZ fall as much as 1.5% to NZ$3.3, their lowest level since July 8

** Analysts at Morningstar maintain their fair value estimate for Fletcher Building at NZ$3.20, expecting volume growth but a weak residential housing market

** Research investment firm notes that in-house and apartment Q1 sales saw 39% fewer units sold as an Auckland concentrated shaky buying market persists, given hiked borrowing costs

** Group-wide, Morningstar expects low single-digit sales volume growth in FY27
** Residential segment estimates lowered, with Morningstar expecting about 500 unit sales in FY27, 25% less than its last estimate and below the 536 units sold in FY26

** Morningstar says it is supportive if Fletcher divests its residential construction segment

** Four of 11 analysts rate the stock "buy" or higher, four "hold" and three "sell" or lower; their median PT is NZ$4.10, according to data compiled by LSEG

** Stock down ~9.8% YTD, including session's moves

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