UBS believes there are enough structural developments to overcome global economic uncertainty. Going forward, the company’s portfolio strategy should mean a high level of sustainable performance fees.
In FY19 Goodman Group generated $600m in development profits, expected to drive performance fees later on. UBS estimates development gains will generate roughly one third of performance fees over the medium to long term.
The broker upgrades to Buy from Neutral, maintaining a steady target of $15.60.
Sector: Real Estate.
Target price is $15.60.Current Price is $13.44. Difference: $2.16 – (brackets indicate current price is over target). If GMG meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
