0046 GMT - Morgan Stanley cites several reasons for its decision to downgrade Fletcher Building to underweight from equal-weight, recognizing that the call runs counter to consensus views. While Fletcher's 2Q volumes improved on 1Q, these gains aren't yet sustainable, MS says. "Trading conditions remain highly competitive, with continued margin pressure across several business units, particularly Distribution," analyst Joseph Michael says. Fletcher's valuation is currently unattractive as it is trading at a 55% premium to its five-year average of 12x, MS says. "At these levels, we see an unattractive risk reward profile, with cyclical pressures still evident, competition elevated, and legacy risks unresolved," MS says. Its price target falls 7.7% to A$2.89/share. Fletcher is down 2.1% at A$3.28. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 28, 2026 19:46 ET (00:46 GMT)

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