UBS observes Home Consortium has outperformed the A-REIT index by 90% since its IPO in 2019. The business has articulated a clear growth strategy, and UBS is impressed by the track record in transitioning to be an asset-light fund manager.
Nevertheless, the broker initiates coverage with a Sell rating and $5.20 target, given the excessively high expectations for asset growth implied by current market pricing. Moreover, this growth is reliant on support from listed equity capital.
Sector: Real Estate.
Target price is $5.20.Current Price is $5.84. Difference: ($0.64) – (brackets indicate current price is over target). If HMC meets the UBS target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
