Citi upgrades two major Australian developers to 'buy' amid higher real estate prices

Stockland

05/04/2023 01:37

(Updates with share moves)
    ** Citi believes residential real estate in Australia
presents good opportunities for outperformance post some
near-term uncertainty
    ** Australian real estate stocks  .AXRE  jump as much as 1%
to hit their highest since March 13
    ** Analysts at Citi upgrade Australian property developer
Mirvac Group  MGR.AX  to "buy" from "neutral"; retains price
target of A$2.40 
    ** Says rising near-term house prices, coupled with a rate
hike pause by the local central bank, are expected to help co
going ahead
    ** See Mirvac's portfolio being high quality, with Group
also having proven development capability and strong balance
sheet - Citi
    ** Brokerage further upgrades another real estate firm
Stockland Corp  SGP.AX  to "buy" from "neutral"; lifts PT to
A$4.60 from A$3.90
    ** MGR shares hit highest since March 17 and are up as much
as 2.3%, while SGP rises as much as 2.4%
    ** Says the property market in Australia is seeing a number
of structural positives including rising immigration amid low
rental vacancy
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))