Higher home prices underpin Morgan Stanley's bullishness on Australia's Mirvac

Mirvac

18/04/2023 01:03

** Brokerage Morgan Stanley bumps up rating and price target
on Australian real estate firm Mirvac Group  MGR.AX  on higher
residential real estate prices, cash flows and more attractive
valuations 
    ** Says Sydney residential prices up 1.4% in March,
according to CoreLogic, set to rise further in April; price
recovery presents opportunity for MGR to re-rate 
    ** Stock's price-to-funds from operations (FFO) multiple has
historically correlated heavily with Sydney house prices, MS
says 
    ** Mirvac's unsold apartments are another opportunity to
increase FFO — MS estimates Mirvac holds about A$900 million of
unsold inventory 
    ** Rating moves to "overweight" from "equal-weight," PT
raised to A$2.55 from A$2.25 
    ** Out of 12 analysts, three rate MGR "buy" or higher, seven
"hold" and two "sell" or lower; median PT is A$2.38 
    ** Stock closed at A$2.26 on Monday; up 6.1% YTD 

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))