Analysts upbeat on developer Goodman Group over strong data centre outlook

Goodman

15/08/2024 20:30

** Analysts at Citi, UBS and Macquarie are seeing
Australia's Goodman Group's  GMG.AX  strong pipeline of data
centres and future opportunities
    ** Commercial and industrial property developer GMG said in
an annual results report on Thursday that DCs make up 40% of its
development work-in-progress, with significant commencements
expected in FY25
    ** GMG logged all-time high FY24 operating profit of A$2.05
bln ($1.36 bln), up 15% from the prior year
    ** Shares of the commercial and industrial property
developer closed 1.3% lower at A$34.71 on Thursday
    ** GMG's FY25 operating EPS outlook of A$1.17 was slightly
below Visible Alpha consensus of A$1.20
    ** Citi retains "buy" rating and PT of A$40.00; sees
potential to improve margins from DCs
    ** UBS and Macquarie highlight GMG's "track record" of
upgrading its outlook through the year
    ** Four of 11 analysts rate GMG "buy" or higher, three
"hold" and four "sell"; their median PT is A$37.06 – LSEG data
    ** GMG up 37% this year, as of last close, outpacing ~14%
growth in the ASX 200 REIT index  .AXPJ 

($1 = 1.5117 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))