BUZZ — NZ's Fletcher Building drops to 5 — month low after Morningstar flags weak housing market

(Updates) * Shares of construction materials firm Fletcher Building fall as much as 1.5% to NZ$3.3, their lowest level since July 8 * Analysts at Morningstar maintain their fair value estimate for Fletcher Building at NZ$3.20, expecting volume growth but a weak residential housing market * Research investment firm notes that in-house and apartment Q1 sales saw 39% fewer units sold as an Auckland concentrated shaky buying market persists, given hiked borrowing costs * Group-wide, Morningstar expects low single-digit sales volume growth in FY27 * Residential segment estimates lowered, with Morningstar expecting about 500 unit sales in FY27, 25% less than its last estimate and below the 536 units sold in FY26 * Morningstar says it is supportive if Fletcher divests its residential construction segment * Four of 11 analysts rate the stock "buy" or higher, four "hold" and three "sell" or lower; their median PT is NZ$4.10, according to data compiled * Stock down ~9.8% YTD, including session's moves (Reporting by Rudrannsh Mehra in Bengaluru) ((Rudrannsh.Mehra@thomsonreuters.com)