Citigroup increases Fletcher forecast

Building Citigroup has increased its profit forecast for Fletcher Building but downgraded the stock to "hold" from "buy".

Citigroup increased its pre-abnormal profit forecast by 5 per cent for 2006 to $342 million, and by 5.5 per cent to $347 million in 2007.

The construction and building supplies firm had diversified its earnings base, generating a higher level of cash flow and was in a position to boost the dividend payout.