Jefferies stays 'cautious' on Aussie GPT's retail, cites softening sales

GPT

07/11/2022 04:48

** Brokerage Jefferies says office leasing remains
"challenging" for property company GPT Group  GPT.AX , with a
softening retail outlook 
     ** Cites GPT's office exposure to Melbourne where leasing
activity is "subdued" with weakening consumer sentiment
    ** "We remain cautious on retail coming into FY23" -
Jefferies says, pointing to weakening consumer sentiment, cost
of living pressures, rising rates and falling house prices;
expects retail sales to soften with risk of recession weighing
down tenant demand   
    ** Still, brokerage maintains its "buy" rating on the group
and raises target price to A$4.80 from A$4.79
    ** Shares of GPT fall as much as 1.40% to A$4.23, their
lowest since Oct. 28  
    ** Six of 14 analysts rate the stock "buy" or higher, two
"hold" and six "sell;" their median PT is A$4.83 - Refinitiv 
    ** Shares of co are down 20.9% YTD, as of last close 
 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))