Financial service company Morningstar has revised its fair value estimate for Australian construction materials maker CSR (ASX:CSR).

The adjustment, which brings the estimate to A$8.75 per share, follows a non-binding takeover offer for CSR.

This proposal came from France’s Saint Gobain and places a value of A$4.30 billion ($2.82 billion) on the company.

CSR has decided to pursue this offer.

Morningstar attributes this revision primarily to a reassessment of the outlook for CSR’s building products division.

This sector contributes nearly 90% of the group’s operating earnings.

The financial services firm believes there is a 75% chance of the deal’s successful completion.

Moreover, they remain optimistic about the long-term profitability of the business.

The uncertainty rating for the stock is set at ‘medium’.

According to LSEG data, two out of 13 analysts give the stock a ‘buy’ or higher rating, nine recommend a ‘hold’, and two advise ‘sell’ or lower; their median price target stands at A$6.60.

The stock has seen a rise of roughly 26.7% this year up to the most recent closing.

CSR (ASX:CSR) is a leading construction materials company headquartered in Australia.