A broker is still recommending investors buy Methven shares, even though the company has slashed its earnings guidance.
The tap and shower ware manufacturer says its annual earnings will be flat to 10 percent higher than the previous year.
Craigs Investment Partners head of wealth research Mark Lister says the stock carries with it above average risk but it is an attractive play on the improving Australasian building cycle.
He says the latest guidance is 8 percent to 16 percent below where market expectations were which is why the share price has weakened over time.
