Morningstar flags Charter Hall Retail undervalued on defensive earnings profile

Charter Hall Retail REIT

Mon 20:00

** Morningstar rates Australia's Charter Hall Retail REIT CQR.AX as undervalued, citing the trust's defensive, non-discretionary tenant mix and stable income profile at a time of weak Australian consumer sentiment
** Investment research firm maintains fair value estimate of A$4.60 per security; says stock trades at a wider discount than retail REIT peers, reflecting what it sees as an overly pessimistic market view
** Australia's consumer sentiment index fell to 80.6 in June, near multi-year lows, as inflation, high interest rates and declining real incomes weigh on households
** Morningstar said Charter Hall Retail relatively insulated from pullback in consumer spending, with about half its portfolio in supermarket-anchored shopping centres and the remainder spread across service stations, pubs and Bunnings stores
** Five of 10 analysts rate the stock "buy" or higher, five "hold"; their median PT is A$4.20, according to data compiled by LSEG
** Stock down 3% this year, including session moves

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))