What Happened to CSR Ltd’s Share Price?
Shares in building products maker CSR Ltd [ASX:CSR] took a beating today, finishing the session down almost 7%. It’s been a tough start to the month for CSR — its share price has fallen more than 11% since hitting a four-year high in late February.
Why Did This Happen to CSR Shares?
Two influential stockbroking firms changed their opinions on CSR this morning. Deutsche Bank AG [ETR:DBK] and Bell Financial Group Ltd [ASX:BFG] both downgraded CSR from ‘buy’ to ‘hold’.
These downgrades reflect investor fears around CSR’s aluminium earnings. After a strong five-week run for the stock, traders seem to want to sell now and ask questions later.
What Now for CSR Ltd?
CSR should benefit from a continued strong Aussie property market. The company makes more money when new housing ‘starts’ pick up. But you should know that construction is a highly cyclical industry, and today’s price action shows that opinion can shift rapidly…so you have to keep your finger on the pulse if you own this stock.
CSR is an interesting way for you to gain exposure to the housing sector. But if you’re seeking big potential rewards from exciting stocks that trade now for mere cents, go here to find out more.
Cheers, Tim Dohrmann
Small-Cap Analyst, Australian Small-Cap Investigator