CSR Limited upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Niraj Shah upgraded CSR Limited to Buy from Neutral with a price target of A$6.45, up from A$5.95. The firm notes that dwellings under construction are at historic highs of about 240k, though starts declined 20% in the 12 months to March 23, with completions troughing. Goldman forecasts the backlog to unwind by end-2024, and assumes TTM completions grow from 175k to 187k by FY24 end, moderate in FY25, then trough in FY26. This would lift short-term volumes for CSR, and by the FY26 trough a steady/lowering interest rate environment could yield a rosier housing outlook, the firm adds.