GPT – Macquarie rates the stock as Outperform

By Broker News | More Articles by Broker News

GPT has redeemed its exchangeable securities issued to GIC and has funded the cost through a $325m raising and $50m SPP. Given the securities paid a coupon of 10%, the raising is earnings accretive, the broker notes. The group now has a strong balance sheet and will likely be an M&A player.

The broker sees this as a prudent move and on an attractive total shareholder return forecast, retains Outperform. Target rises to $4.44 from $4.33.

Sector: Real Estate.

Target price is $4.44.Current Price is $4.36. Difference: $0.08 – (brackets indicate current price is over target). If GPT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).a.com for a free trial.

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →