It has been tough going in 2026 for ASX industrials stock Reliance Worldwide Corp Ltd (ASX: RWC).
Reliance Worldwide is an Australian-owned company that designs and manufactures branded plumbing and heating products sold internationally.
Year to date, its share price has fallen almost 16%.
After crashing to start the year, investors may be circling this ASX industrials stock as a bounce-back candidate.
Fresh information was released from the company this week in the form of its FY26 Full Year Trading Outlook.
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What did the company announce?
On Tuesday, the team at Reliance Worldwide reaffirmed all earnings guidance, including regional and group outlooks, for 2H26 and FY26.
Based on nine months trading ended 31 March 2026, there is no material change to the FY26 second half and full year guidance issued on 17 February 2026. All guidance – including regional and Group outlook, FY26 net tariff impact, cash flow conversion, capital expenditure, D&A, net interest, effective tax rate and cost savings – is reaffirmed.
It appears investors were pleased with the announcement, as this ASX industrials stock has rebounded 7% across the last two days of trading.
Following the announcement, the team at Morgans also provided updated guidance on the ASX industrials stock.
Here's what the broker said.
Trading update better than feared
In a note out of Morgans this week, the broker said that against an uncertain global macro backdrop and the potential impact of higher oil prices stemming from the Middle East conflict, the trading update was better than feared.
In relation to the expected impact from US tariffs, while there have been several changes since the 1H26 result in February, the anticipated impact on RWC's earnings in FY26 and FY27 remains unchanged.
Target price increases
Morgans made no changes to FY26 earnings forecasts but reduced FY27 and FY28 underlying EBITDA by 2%, reflecting a more modest earnings growth profile amid ongoing subdued housing conditions.
Despite the adjustments to earnings forecasts, our target price increases to $3.25 (from $3.00), reflecting an uplift in our PE valuation multiple to 12x (from 11x) following the better-than-feared trading update. HOLD rating maintained.
After increasing its price target, it now appears that this ASX industrials stock is trading at fair value.
It closed yesterday at $3.24, right around the updated target from Morgans.
Elsewhere, the average analyst price of 16 experts via TradingView sits at $4.09.
This indicates a potential upside of 26%.
