Australia's Scentre drops 5.6% after Macquarie downgrades shares

Scentre

02/06/2026 06:33

** Shares of retail property manager Scentre SCG.AX fall as much as 5.6% to A$3.56 in their biggest intra-day pct loss since February 12  
** Macquarie downgrades SCG to "underperform" from "neutral" on valuation grounds; lifts price target by 6.8% to A$3.45, but sees limited upside, with risks to property valuations
** Notes security price has risen ~12.7% from recent lows, limiting upside
** Flags surprise at lack of guidance upgrade despite expected earnings uplift from lower funding costs
** Raises earnings forecasts for FY26-FY28, citing improved debt margins and refinancing benefits
** Says portfolio operating metrics remain strong, though consumer sentiment remains weak amid cost‑of‑living pressures
** Stock down 11.9% this year, including the day's move

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.nair@thomsonreuters.com))