Citi sees Australia's Goodman Group poised for overall earnings growth

Goodman New Zealand and Goodman Property Services

16/02/2023 22:06

** Citi says Australia's Goodman Property Group is poised for overall
earnings growth in the future in an uncertain macro environment due to higher
funds under management and higher development margins 
    ** The property firm's HY statutory net profit dropped to A$1,097 million
($754.41 million) from A$2,002.8 mln a year ago, but still ahead of consensus
estimate of A$864 million  urn:newsml:reuters.com:*:nFWN34V4V9      
    ** Broker estimates FY23 earnings per share to be at 94.8 AU cents; co had
reported H1 FY23 EPS of 46.4 AU cents 
    ** Citi says higher investment and development earnings in the second half
of fiscal 2023 will influence results positively for the financial year, which
could however be offset by rising interest costs 
    ** Brokerage maintains a "Buy" rating, increases price target to A$24 per
share from A$21.10/shr; says stock is top sector pick  
    ** Seven of 12 analysts rate the stock "buy" or higher and five "hold";
their median PT is A$21.69 – Refinitiv data
    ** Stock has risen 16.53% this year, as of last close
($1 = 1.4541 Australian dollars)
 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))