Dexus has upgraded FY21 distribution guidance to 51.8cps from 50.3cps. This implies to Morgan Stanley that around 70% of the upgrade is likely due to strong operations and strategic initiatives, such as the ADPF merger. The balance is estimated due to transaction timing.
Overweight rating with a target of $11.70. Industry View: In-line.
Sector: Real Estate.
Target price is $11.70.Current Price is $10.43. Difference: $1.27 – (brackets indicate current price is over target). If DXS meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).