Morningstar initiates coverage on Australia's Growthpoint Properties

Growthpoint Properties Australia

15/09/2025 22:43

** Morningstar initiates coverage on Growthpoint Properties Australia GOZ.AX with a no-moat rating and a fair value estimate of A$2.80

 ** The investment research firm expects the real estate manager's balance sheet to improve as its management continues to recycle capital

** Morningstar says asset valuations are expected to stabilize for GOZ and eventually rise, as interest rates are moderating

** Says GOZ's offices are mostly located on city fringes, which is a major drawback, and expects slower recovery for its office buildings compared with their city center counterparts

** "The market is primarily concerned about further office devaluations and Growthpoint's relatively high gearing" - Morningstar

** Four of five analysts rate the stock "buy" or higher, one rate "hold"; their median price target is A$2.59, as per data compiled by LSEG

** Stock is up 9.7% YTD, as of last close

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com;))