Australia's Goodman Group's data centre plans pose risks, says Morningstar

Goodman

28/05/2025 21:31

** Australia's largest-listed property developer Goodman Group GMG.AX said on Wednesday it maintained its FY25 operating EPS growth outlook of 9%

** Morningstar says co's securities are currently overvalued, driven mainly by market optimism surrounding data centres

** GMG has ~A$14 billion development pipeline, half of which is consists of data centres — Morningstar

** Investment research firm expresses concern over risks in data centre projects, highlighting the need for stringent planning, extended construction timelines, and others

** Retains fair value estimate at A$28/security

** Stock down 7.5% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))