First-quarter update was mixed, UBS observes, with highlights being the ongoing strength in the commercial & industrial portfolio as retail sales growth slows marginally. Residential releases were slightly disappointing.
The company has reaffirmed earnings guidance and will benefit in FY20 from over 2500 settlements. The focus remains on introducing capital partners into office developments in order to de-risk medium-term earnings.
UBS maintains a Sell rating, believing growth is priced into the stock. Target is raised to $3.00 from $2.90.
Sector: Real Estate.
Target price is $3.00.Current Price is $3.16. Difference: ($0.16) – (brackets indicate current price is over target). If MGR meets the UBS target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).