FY19 results were in line with UBS expectations. FY20 guidance has been updated to reflect the Tuckerbox transaction not proceeding. Distribution growth guidance is maintained at 5%.
UBS believes the company is well-positioned for a solid growth profile in distributions over the medium term. Headline earnings, nevertheless, are likely to underwhelm as residential pre-sales are now down -70% from their peak.
Sell rating maintained. Target rises to $2.90 from $2.64.
Sector: Real Estate.
Target price is $2.90.Current Price is $3.40. Difference: ($0.50) – (brackets indicate current price is over target). If MGR meets the UBS target it will return approximately -17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
