Analysts at finance firm Macquarie have cut the price target on Fletcher Building, a major New Zealand company, from NZ$7.20 to NZ$6.70 per share.

This reduction is due to lower margin expectations from its Australia and New Zealand business, along with increased cost estimates for silicosis.

Despite this, Fletcher Building shares increased by 1.1% to NZ$4.65.

Macquarie predicts that constraints on ANZ’s construction markets will continue to impact the company.

It also reduces EPS estimates by 2% for FY24 and 3% for both FY25 and FY26.

Out of ten analysts, seven rate the stock as a “buy” or higher, two hold and one sells.

The median price target given is A$6.0, according to LSEG data.

Despite recent gains, Fletcher Building’s stock has fallen 2.5% this year, based on the last closing figures.

Fletcher Building (ASX:FBU) is a major construction company based in New Zealand, with prominent operations in both Australia and New Zealand.