Mirvac Group HY results ahead of estimates but 'low quality' beat - Jefferies

Mirvac

10/02/2023 24:09

** Jefferies raises prices target on Australian real estate
firm Mirvac Group  MGR.AX  to A$2.37 from A$2.33, says
half-yearly results ahead of its estimates but a "low quality"
beat; maintains "hold" rating
    ** Mirvac shares fell about 4.5% on Thursday after
half-yearly profit dropped to A$215 mln ($149.27 mln) from A$565
mln a year earlier
    ** Brokerage says HY operating profit of A$305 mln was 16%
ahead of its estimates, while EPS of 7.7 AU cents 8% ahead of
consensus
    ** Jefferies sees MGR's balance sheet strength as key
positive, but says retail environment remains challenging for
MGR
    ** Says given the cost of living pressure, rising rates and
falling house prices, masterplanned communities (MPC)
cancellations will be elevated and apartment pre-sales
challenging in FY23, with lower commercial development returns
    ** Four of 12 analysts rate the stock "buy" or higher, six
"hold" and two "sell"; their median PT is A$2.39 – Refinitiv
data
    ** MGR stock had risen 7.5% this year after declining about
26.8% in 2022
    ($1 = 1.4403 Australian dollars)
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))