Fletcher Building shares took a nosedive, as they declined by a striking 14.1% to NZ$4.190, marking their largest intraday percentage loss since October 28, 1997.

The construction materials manufacturer, on Friday, refuted the allegations of defective pipes.

They reported that the plumbing issues in several homes in Western Australia, constructed by a local firm, were a result of shoddy installation rather than manufacturing flaws in the pipes they provided.

The company has gathered evidence indicating that the costs of repairing the defective Perth houses may lie between NZ$50 mln ($29.53 mln) and NZ$100 mln.

Notably, J.P.

Morgan lowered its price target to NZ$4.90 from NZ$5.60, but maintained an ‘overweight’ rating on the shares.

J.P.

Morgan suggests viewing any imminent share price instability as an investment opportunity, as potential signs of stabilization in the New Zealand’s real estate market was viewed as outweighing potential slide from the Iplex issues.

Citi, on the other hand, estimates outflows to be less than around NZ$50 mln per year for a maximum duration of five years.

Shares incumbently hit their lowest point since November 2, 2020.

The stock of Fletcher Building was up 3.4% YTD, as of the last close.

Fletcher Building is a New Zealand-based firm specializing in the manufacturing and distribution of construction materials.