Mirvac's FY23 guidance appears conservative but risks remain - analysts

Mirvac

11/08/2022 21:59

** Jefferies and Citi Research agree Mirvac Group's  MGR.AX 
FY23 guidance appears conservative; Jefferies raises PT to
A$2.22 from A$2.12
    ** MGR on Thursday said it is targeting distribution of at
least 10.5 Australian cents per stapled security (CPSS) and
operating earnings of at least 15 Australian CPSS in FY23
 urn:newsml:reuters.com:*:nASX8qwPbK
    ** MGR posted FY operating profit of A$596 mln ($423.34
mln), compared to A$550 mln last year and in line with consensus
estimate 
    ** Jefferies says MGR has strong balance sheet to help
execute its A$12.4 bln development pipeline but adds that with
increased cost of living pressure, rising rates & falling house
prices, FY23 will be challenging
    ** "Medium term, we believe the development pipeline will be
the key driver of earnings and is reliant on market conditions
remaining favourable" - Citi 
    ** Citi says current environment of uncertainty will lead
investors to focus on higher quality stocks like MGR; retains
"buy" rating
    ** Seven of 12 analysts rate the stock "buy" or higher,
three "hold" and two "sell"; their median PT is A$2.45 –
Refinitiv data
    ** Stock down 25.4% YTD, as of last close


($1 = 1.4079 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))