Australia's HMC Capital falls to over two-year low as Morgan Stanley cuts PT

HMC Capital

29/07/2025 05:20

Updates with share moves

** Shares of HMC Capital HMC.AX fall as much as 4.6% to A$3.57, their lowest level since March 31, 2023

** Morgan Stanley lowers PT on Australia's HMC Capital HMC.AX to A$4.46 from A$5.41

** Brokerage says lowered PT after it removed its FY26 forecast of A$35 million ($22.83 million) per year of unrealised gains from co's CP1 private equity fund it previously assumed

** Brokerage cuts FY26/27 profit forecasts by 19-20%, noting recent volatility in CP1's listed equity holdings, which it estimates are currently facing A$20 mln YTD loss

** Flags HMC's multi-platform growth aspirations remain intact, but confidence hinges on securing an energy transition partner or a successful divestment; stays "equal-weight"

** Adds execution risk persists amid weaker equity returns and muted sentiment in unlisted funds

** Stock down 63.4% YTD, including session's moves

($1 = 1.5330 Australian dollars)

 (Reporting by Rishav Chatterjee and Shivangi Lahiri in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))