Fleetwood Ltd's stock soared 7.80% during intraday trading on Friday, following positive analyst commentary highlighting the company's strategic reset and recent acquisition.
Euroz Hartleys maintained its buy recommendation on Fleetwood while raising its price target to AU$3.38 from AU$3.13, citing significant upside potential. The analyst noted the company's strategic restructuring and the acquisition of the Red Dog Village in Karratha, which is expected to generate annualized earnings before interest and taxes of between AU$10 million and AU$20 million once completed.
The research firm also pointed to an improving outlook for the Building Solutions division, which is expected to return to profitability in fiscal 2027 following the closure of a modular building facility in New South Wales. Additionally, the existing Searipple Village is projected to maintain high occupancy rates, supporting earnings stability.