Morningstar backs Australia's Goodman Group on long-term data centre projects

Goodman

27/05/2026 20:38

** Morningstar expects Goodman Group's GMG.AX assets under management (AUM) to double over the next decade
** Investment research firm expects data centre landlord's development pipeline to expand to A$18 billion ($12.85 billion) in 2027, up from A$13 billion as of 2025
** Bets on GMG's "large-scale" and "higher-value" projects, with data centers as the forefront of its strategy
** Morningstar supports GMG's uncommon strategy of bringing in capital partners early, which helps realize part of the project value early and derisk development 
** Says co prefers urban locations in core gateway cities, adding to the appeal of its portfolio
** Adds, however, heavy capital spending on long-term development without any clarity on tenant demand and leasing is a key risk
** Avg rating of 12 analysts suggests "buy" or higher; their median PT is A$35.5, LSEG-compiled data shows
** YTD, stock flat as of last close
     
($1 = 1.4006 Australian dollars)

(Reporting by Aamir Sheik Khalid in Bengaluru)
((Aamir.SheikKhalid@thomsonreuters.com))