Citi bullish on GPT Group's logistics unit growth, upgrades to 'buy'

GPT

19/09/2022 01:15

** Citi upgrades rating on Australian property group GPT
Group  GPT.AX  to "buy" from "neutral" with a price target of
A$4.90
    ** Says logistics division continues to show growth with
A$265 mln ($177.89 mln) completions in 1H22; has logistics
development pipeline of A$1.9 bln 
    ** Adds that GPT is one of "value picks" given that shares
are down 25% so far this year 
    ** Brokerage says drop in GPT's shares - down 25.5% so far
this year - offers value at current levels
    ** "Estimates increase in FY23/FY24, driven by movement in
near-term hedge rates, with FY25 earnings declining on higher
interest costs," Citi says
    ** Brokerage estimates FY22 core net profit to be A$624.4
mln, A$617.7 mln in FY23, and A$630.4 mln in FY24, compared with
A$554.5 mln for FY21
    ** Five of 14 analysts rate the stock "buy" or higher, three
"hold" and six "sell" or lower; their median PT is A$4.83 -
Refinitiv data

   ($1 = 1.4896 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((john.biju@thomsonreuters.com))