Morgan Stanley positive on HMC Capital's $1.29 bln data center deal

HMC Capital

24/10/2024 23:49

** Analysts at Morgan Stanley say HMC Capital's  HMC.AX 
acquisition of Global Switch Australia will ultimately be
considered a positive, assuming the successful launch of its
proposed listed (DigiCo) and unlisted (HDIF) data centre funds
    ** Asset manager HMC Capital had also announced an A$300 mln
($199.08 mln) share placement at A$8.75 per share to fund the
A$1.94 bln ($1.29 bln) acquisition, a move to tap into the
highly attractive data center market    
    ** Brokerage estimates the acquisition could add A$20 mln
-$30 mln+ to FY25 forecast earnings assuming typical
transactions and establishment fees
    ** Morgan Stanley raises PT to A$9.10 from A$8.80, and notes
co's assets under management will be boosted by around A$2 bln
    **  Two of 10 analysts rate the stock "buy", six "hold," and
two "sell"; their median PT is A$8.15 –– LSEG data
    ** Stock has risen 49.5% YTD as of last close


($1 = 1.5069 Australian dollars)

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))