Charter Hall has upgraded FY22 guidance to “at least $0.83 per security”. Credit Suisse is not surprised, as original guidance ($0.75 per security) did not contain any base assumptions for performance fees or growth in funds under management (FUM).
Moreover, there could be further upgrades as transaction activity is yet to be included. FUM has grown by $1.7bn since June 30 2021 to $54bn.
The broker revises FY22 and FY23 estimates up by 11.6% and 10.6%, increasing the target to $19.37 from $18.87. Neutral maintained.
Sector: Real Estate.
Target price is $19.37.Current Price is $18.00. Difference: $1.37 – (brackets indicate current price is over target). If CHC meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
