Brickworks shares: Buy, Hold, or Sell?

Brickworks Limited (ASX: BKW) shares are a popular option for investors.

And luckily for them, the building products company’s shares have been on a roll of late.

For example, in afternoon trade, the company’s shares are up almost 1% to $28.78.

This leaves them trading within a fraction of their record high of $29.32. In addition, it means they are now up by a sizeable 18% since this time last year.

The question now, though, is whether its shares have peaked or can keep rising from here. Let’s find out what analysts are saying.

Can Brickworks shares keep rising?

The general consensus at present is that the company’s shares are fully valued right now.

For instance, two brokers that have the equivalent of buy ratings on its shares have price targets that are either in line with its current price or lower that it.

Bell Potter has a $27.80 price target and UBS has a $29.00 price target.

Elsewhere, analysts at Macquarie, Morgans, and Ord Minnett all have the equivalent of hold ratings on Brickworks’ shares with price targets suggesting downside of 6% to 14%.

It’s not all doom and gloom

There is one broker that has broken from the pack and still sees major upside potential for investors.

A note out of Citi last month reveals that its analysts have retained their buy rating and lifted their price target to $35.00. This implies potential upside of almost 22% for investors over the next 12 months.

Citi thinks that investors should look past near-term concerns about Brickworks’ property earnings and is tipping higher capital value realisations from this side of the business in future. The broker said:

With peaking rates in sight, we believe further valuation declines may be limited and the tight demand supply dynamics in the industrial market could create further rental upside.

The post Brickworks shares: Buy, Hold, or Sell? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Macquarie Group. The Motley Fool Australia has positions in and has recommended Brickworks and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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