Why the Brickworks (ASX:BKW) share price reached a new 52-week high today

Brickworks shares continue their run today. Here are more details.

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a man stands amid a building site featuring brick walls with building equipment in the background.

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The Brickworks Ltd (ASX: BKW) share price has stepped into the green in afternoon trade today, peaking at $26.25 a share.

That marks a new 52-week high for the property and building specialist with its share price up 10% in the last month alone.

At the time of writing, Brickworks shares were trading hands for $26.02 per share, up 1.01%.

Here’s what we know is propelling the Brickworks share price of late.

Why is the Brickworks share price climbing today?

There’s been no market-sensitive information for the company today. However, last week on 23 September, the company released its FY21 results presentation made to analysts.

In its presentation, the company gave an overview of its FY21 performance and outlook for FY22 while also taking questions from participating analysts.

For reference, it recognised a 95% gain in underlying net profit after tax (NPAT) and increased its dividend by 3% to 40 cents per share in FY21.

The Brickworks share price jumped from a previous low of $24.47 immediately following the release and has now surpassed its previous high of $25.98 on September 14.

Aside from this, there was positive sentiment out of investment bank Citibank whose analysts revealed a buy rating and a price target of $30 on Brickworks’ shares.

The analysts are happy with Brickworks’ FY21 results which came in ahead of expectations and upgraded their modelling accordingly. It implies a 14% upside potential from Brickworks’ current share price.

One other key factor at play appears to be the relationship Brickworks has with fellow ASX share Washington H Soul Pattinson & Co Ltd (ASX: SOL).

Brickworks has a significant equity stake in Soul Pattinson which also has a significant stake in Brickworks.

That means fluctuations in the pairs’ share prices will flow through to one another. For instance, the Soul Pattinson share price has climbed around 12% in the past few days and is up 14.5% in the past month.

Given its relationship with the Brickworks share price, plus the factors mentioned earlier, it starts to form the picture of the moving parts.

The sum of these factors appear to be what is fuelling the returns Brickworks’ shareholders are enjoying today.

Brickworks share price snapshot

The Brickworks share price has climbed 36% this year to date, extending its climb over the past year to 35%.

Both of these results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s gain of around 25% over the past year.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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