Citi sees resilience at Australia's Mirvac despite macroeconomic headwinds

Mirvac

27/10/2026 20:11

** Citi says Mirvac's MGR.AX Q1 FY27 update shows operational resilience despite macroeconomic headwinds and a moderation in residential sales
** Brokerage says residential sales moderated to 429 net deposits and lot exchanges, down 17% from Q4 FY26, due to interest rate and tax policy pressures impacting buyer sentiment
** Notes FY27 residential volume guidance of 2,800 to 3,100 lots remains intact, with visibility anchored by about A$1.4 billion ($982.38 million) in pre-sales on hand
** Citi notes weighted average cost of debt is now forecast at 5.8%, up 10 basis points following the recent rate hike
** Says, MGR is presenting good value upside to a potential residential recovery once rates peak in 2027
** Citi retains "buy" rating and an unchanged A$2 price target
** YTD, stock down 10.7%, as of last close

($1 = 1.4251 Australian dollars)

 (Reporting by Paridhi Minda in Bengaluru)
 ((Paridhi.minda@thomsonreuters.com))