Goodman Group has reaffirmed FY19 guidance of growth in operating earnings of 9.5% and distribution growth of 7%. Credit Suisse notes the update highlighted the global demand for logistics space within the proximity of consumers in urban locations.
The company expects development work in progress to approach $5bn by FY20 and assets under management to exceed $45bn by June this year. The broker maintains an Outperform rating and increases the target to $14.04 from $13.22.
Sector: Real Estate.
Target price is $14.04.Current Price is $13.32. Difference: $0.72 – (brackets indicate current price is over target). If GMG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).