The CSR Ltd (ASX: CSR) share price has travelled in circles over the past 12 months amid a challenging environment.
Overall, the building products company’s shares have remained steady over the past 12 months. The volatility can be attributed to the COVID-19 pandemic which previously caused disruptions to CSR’s operations.
Nonetheless, management has steered the business to perform financially following good manufacturing performance and ongoing cost discipline.
With the company’s full-year results around the corner, is now the time to pick up CSR shares?
What to expect for the upcoming FY22 result?
In November 2021, CSR noted that building activity grew in line with expectations going into the new calendar year.
While there are fewer trading days in the second half, management expects elevated activity due to the traditional seasonality of the building industry.
The diversified nature of its building products business is well-positioned for the current trading period and beyond. This is supported by the company’s continued focus on maximising market opportunity, executing strategy, and maintaining cost and operational discipline.
In its property portfolio, EBIT for the year ending March 2022 (YEM22) is expected to be around $34 million. This reflects a massive increase when compared to the $6.6 million achieved in H1 FY22.
In its aluminium business, EBIT for YEM22 is expected to be in the range of $35 to $41 million. However, this is assuming all other revenue and cost areas (including coal costs) are unchanged.
Broker opinions on the CSR share price
A number of analysts believe that the CSR share price offers an attractive investment opportunity.
The team at Jarden initiated an outlook on the company’s shares to “overweight”, with a price target of $6.70. This implies a potential upside of almost 10% based on the current CSR share price.
In addition, Citi slashed its rating by 5.7% to $6.63 which also represents a similar upside for investors.
The most bullish broker, Macquarie, lifted its price target by 5.4% to $6.80 on the company’s shares.
It seems the above brokers believe the CSR share price still has room to grow in the near-term future.
When looking year to date, the CSR share price has nudged up almost 3% in value.
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