Australia's Region Group falls as Jefferies trims PT

Region Re

25/10/2023 01:54

** Shares of Australia's Region Re Ltd  RGN.AX  fall as much
as 1.92% to A$2.04, down for a second day
    ** Jefferies cuts price target on shopping centre leasing co
to A$2.25 from A$2.38
    ** Co said on Monday Sept-qtr total portfolio sales growth
was 4.1%, down from 4.5% in June qtr
    ** Jefferies flags cost of living pressures and higher
interest rates to continue to slow demand for discretionary
goods
    ** "FY24 guidance was maintained, but lack of growth &
slowing discretionary sales weigh on RGN" - Brokerage 
    ** Says softness in new deals indicates RGN may have to cut
rents to attract new spec tenants at potentially higher
incentives
    ** Adds RGN's supermarket sales accelerated in Q1, but
remain below data from the Australian Bureau of Statistics
    ** Four of nine analysts rate RGN "buy" or higher and five
"hold"; their median PT is A$2.47 – LSEG data
    ** Stock down 23.3% YTD, as of last close

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.GovindRao@thomsonreuters.com;))