SCG – Deutsche Bank rates the stock as Sell

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Scentre Group has sold a 50% interest in Westfield Burwood for $575m, representing a 4% premium to the December 2018 book value.

Deutsche Bank considers this a positive outcome, given the abundant supply of shopping centres on the market. The sale is likely to alleviate some balance sheet pressure but the broker suspects gearing could still rise above 35%.

Sell rating maintained with a $3.69 target.

Sector: Real Estate.

Target price is $3.69.Current Price is $3.85. Difference: ($0.16) – (brackets indicate current price is over target). If SCG meets the Deutsche Bank target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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