0624 GMT - Reliance Worldwide's decision to close its Australian brass operations makes sense to Morgans analyst Alexander Lu. He tells clients in a note that the ASX-listed plumbing supplies manufacturer has become less reliant on Australia-sourced brass over recent years. He observes that North American production has increased, Asia sourcing has risen, and that some products just require less brass. Lu makes no changes to his fiscal 2026 underlying earnings forecasts, but raises his fiscal 2027 Ebitda forecast by 1% on the assumption that Reliance can realize a third of the US$9 million in annual savings it expects from the closure. Morgans keeps a hold rating on the stock and lifts its target price 11% to 3.60 Australian dollars. Shares are down 3.0% at A$3.56. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 23, 2026 02:24 ET (06:24 GMT)

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