Morningstar

Abacus

05/09/2023 21:35

** Analysts at Morningstar sees rising interest costs to
roughly offset revenue growth for next three years for real
estate investment trust Abacus Group  ABG.AX  
    ** Brokerage says market rents have risen from pandemic lows
and co's rents are below the market average
    ** Morningstar assumes no rent growth on new leases signed
in fiscal 2024 for co, and moderate 3% rental growth thereafter
    ** Brokerage reduces fair value estimate for co by 8% to
A$1.75; gives "medium" uncertainty rating
    ** Brokerage says co's relatively short average lease length
of 3.7 years implies higher-than-average leasing risk
    ** 4 of 7 analysts rate the stock "buy" or higher, 1 "hold"
and 2 "sell"; their median PT is A$2.52 - LSEG data
    ** ABG down 7.1% YTD as of last close 
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))