Goodman Group's DeepSeek-linked fall a 'reality check', Morningstar says

Goodman

28/01/2025 20:06

** Analysts at Morningstar call Goodman Group's  GMG.AX 
decline on Tuesday "a reality check" on data center hype 
    ** The data center operator's stock closed 8.2% lower on
Tuesday, as investors feared the emergence of a low-cost AI
model from Chinese startup DeepSeek would reduce infrastructure
spending
    ** Morningstar maintains a fair value estimate of A$27.00 on
GMG, which closed at A$35.00 on Tuesday
    ** "While the security still screens as overvalued, the
DeepSeek launch sends a reminder of the dangers of high
expectations with respect to a listed entity's exposure to the
fast-developing AI industry" - Morningstar  
    ** Six of 10 analysts rate the stock "buy" or higher, three
"hold"; their median PT is A$40, according to data compiled by
LSEG
    ** Stock down 1.8% this year

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))