UBS is increasingly convinced of Charter Hall’s ability to continue raising and deploying third-party equity/debt. The broker upgrades earnings estimates by 7-8% to reflect growth in assets under management and co-investments.
UBS also believes concerns regarding peak performance fees in FY20 and Sydney/Melbourne office fundamentals are unjustified. The broker upgrades to Buy from Neutral and raises the target to $12.50 from $12.10.
Sector: Real Estate.
Target price is $12.50.Current Price is $10.99. Difference: $1.51 – (brackets indicate current price is over target). If CHC meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).