Morgans considers Reliance Worldwide offers the best value in the building materials sector, as trading multiples are near historical lows and margins remain healthy while the earnings outlook is solid.

The broker reduces the target to $5.30 from $6.35, reflecting a rolling forward of its model to FY23 forecasts and a lower valuation multiple following a decline in peer trading multiples. Add maintained.

Sector: Capital Goods.

Target price is $5.30.Current Price is $3.93. Difference: $1.37 - (brackets indicate current price is over target). If RWC meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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