Australia's Charter Hall Retail rises, Morningstar says shares are undervalued

Morningstar

16/06/2026 04:02

Updates
** Shares of Australia's Charter Hall Retail REIT CQR.AX rise as much as 0.5% to A$3.970, hitting their highest level since May 1

    ** Stock on track for its eighth consecutive session of gains
  
** Morningstar rates CQR as undervalued, citing the trust's defensive, non-discretionary tenant mix and stable income profile at a time of weak Australian consumer sentiment
** Investment research firm maintains fair value estimate of A$4.60 per security; says stock trades at a wider discount than retail REIT peers, reflecting what it sees as an overly pessimistic market view
** Australia's consumer sentiment index fell to 80.6 in June, near multi-year lows, as inflation, high interest rates and declining real incomes weigh on households
** Morningstar said Charter Hall Retail relatively insulated from pullback in consumer spending, with about half its portfolio in supermarket-anchored shopping centres and the remainder spread across service stations, pubs and Bunnings stores
** Five of 10 analysts rate the stock "buy" or higher, five "hold"; their median PT is A$4.20, according to data compiled by LSEG
** Stock down nearly 3% this year, including session moves

 (Reporting by Roshan Thomas & Rajasik Mukherjee in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))