The interim results, with EBITDA of $36.3m down 13% on pcp, demonstrated the impact of recently tightened lending conditions; although settlements were up, sales were markedly down. While PPC is well positioned to weather the current conditions (strong balance sheet, a well-diversified and low-cost portfolio, and a capital-light funding model), it will not be able to escape the headwinds. There is upside to reach our revised valuation of $120 (prior $1.30), but while property market uncertainty and risks prevail, we struggle to see positive catalysts. As a result we change our recommendation to HOLD (prior BUY).
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.