Credit Suisse revises its FY21-23 forecasts higher, the main driver being increased residential volume and price expectations. The target price is increased to $3.06 from $2.63, a function of earnings changes as well as the removal of discounts for the office and retail portfolios.
On balance, Credit Suisse does not believe the retail portfolio faces the same structural challenges experienced by other landlords.
In terms of the office portfolio, while not immune to falling effective rents because of rising incentives, the broker is not of the view Mirvac is subject to material short-term vacancy risk. Outperformed maintained.
Sector: Real Estate.
Target price is $3.06.Current Price is $2.89. Difference: $0.17 – (brackets indicate current price is over target). If MGR meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).