DXS – Macquarie rates the stock as Neutral

Dexus and DWPF have exercised their rights to acquire the remainder of MLC tower, taking ownership to 50% each.

Macquarie believes the transaction has turned out better than expected for Dexus unitholders as this is a prime Sydney CBD asset that has been acquired at book value amid favourable funding terms.

The broker believes Dexus remains a market performer and office conditions should stay favourable. Neutral rating maintained. Target is raised to $11.36 from $11.31.

Sector: Real Estate.

Target price is $11.36.Current Price is $12.34. Difference: ($0.98) – (brackets indicate current price is over target). If DXS meets the Macquarie target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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 →