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))