MGR – Credit Suisse rates the stock as Neutral

First half results were in line with expectations. The main growth driver in the future is the commercial development pipeline, in Credit Suisse’s view.

This includes $3.1bn in office development under construction that is substantially pre-committed. There is also a $1.2bn industrial pipeline.

The broker suggests management has picked the cycle well and should be commended for its disciplined growth strategy.

Neutral rating maintained. Target is raised to $3.26 from $3.11.

Sector: Real Estate.

Target price is $3.26.Current Price is $3.33. Difference: ($0.07) – (brackets indicate current price is over target). If MGR meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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