Fletcher Building Ltd (ASX: FBU) shares are flying higher into the green in Thursday morning trade.
At the time of writing, Fletcher Building is the best-performing stock on the S&P/ASX 200 Index (ASX: XJO). The shares are up around 7% this morning and changing hands at $2.97 a piece.
Today’s uptick also follows a 1.5% increase in the company’s share price at the close of the market on Wednesday afternoon.
It’s been a great recovery story for the construction management company’s shares over the past couple of months. The stock has now rebounded around 31% in value from a two-decade low recorded in late April.
Over the past month, Fletcher Building shares have climbed nearly 13% higher, and they’re roughly 8% higher than 12 months ago.
What is driving Fletcher Building shares higher today?
In a statement to the ASX ahead of the market open this morning, the company announced it has raised its full-year EBIT guidance by 6.4% to $400 to $403 million.
The company’s FY26 EBIT from continuing operations (excluding property sales) has also been raised to $348 to $351 million, up around 3.6% from its mid-June guidance.
The company cited positive quarterly volumes across its core manufacturing and distribution segments. The increase was partly driven by customers bringing forward demand ahead of expected price increases.
Clearly, investors were thrilled with the update, and many have rushed to buy the shares today.
Fletcher Building is expected to announce its final FY26 financial results this earnings season in mid-August.
Can the shares keep climbing higher?
If the company can deliver, or even exceed, its latest guidance figures, I think the shares have a lot of potential to keep climbing higher in the near future.
It looks like analysts are relatively neutral on the stock, however.
At the time of writing, 6 of 13 analysts have a hold rating on the shares. Another four rate the shares as a buy or strong buy, and three rate the stock as a strong sell.
After today’s price rally, the average $2.82 target price implies a potential 2% downside at the time of writing.
The range between the minimum and maximum is significant, though. Some forecast the shares to climb around 17% to $3.37 each. Meanwhile, others think the stock could fall as much as 53% to $1.355 a piece.
After today’s announcement, it’s possible we’ll see some brokers revise their outlooks in the coming days.
The post Why are Fletcher Building shares flying 7% higher today? appeared first on The Motley Fool Australia.
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More reading
- Fletcher Building lifts FY26 profit guidance as quarterly volumes rise
- Here are the top 10 ASX 200 shares today
- Fletcher Building tips stable FY26 as divestments strengthen balance sheet
Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.