Jefferies trims PT on 'quality stock' Shopping Centres Australasia

Region Re

20/06/2022 20:51

** Jefferies trims PT on Australia's real estate company
Shopping Centres Australasia Property Group  SCP.AX  to A$3.01
from A$3.18, maintains "buy" rating
    ** Co enters into agreements with Centuria Capital Group's
 CNI.AX  unit Primewest to acquire five convenience-based
shopping centres across Australia for a combined purchase price
of A$180 mln ($125.06 mln)  urn:newsml:reuters.com:*:nASX8hv2Jx
    ** Jefferies believes SCP paid a fair price for the
purchased assets 
    ** Brokerage says that it likes SCP for its strong
management and defensive non-discretionary retail focus and adds
SCP is a "quality stock" with low downside risk to asset values 
    ** Says FY23 should benefit from acquisitions and
supermarket inflation as anchor tenants like Woolworths and
Coles account for 48% of rent, with 34% in turnover
    ** "It is our view that convenience-based non-discretionary
mall owners like SCP are less susceptible to broader
discretionary retail challenges and online sales erosion over
the medium-to-longer term" - Jefferies
    ** Three of 12 analysts rate the stock "buy" or higher, six
"hold", and 3 rate it "sell" or lower; their median PT is A$3.00
- Refinitiv data
    ** As of last close, stock down 9.8% this year

($1 = 1.4393 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Sandra
Maler)
 ((Himanshi.Akhand@thomsonreuters.com;))