Jefferies upbeat on Vicinity Centre's earnings view, but flags consumer headwinds

Vicinity Centres

20/06/2022 20:15

** Brokerage Jefferies says Vicinity Centres'  VCX.AX  FY22
forecast hike for its Funds From Operations (FFO) is 1.7% above
the former's consensus 
    ** However, Jefferies cuts PT slightly to A$1.82 from A$1.83
and retains a 'hold' rating on the stock
    ** With capitalization rates likely expanding in FY23 by
30-50 basis points and with interest rates rising we expect
demand for discretionary goods to wane - Jefferies  
    ** Australian mall operator, Vicinity Centres, on Monday
said it expects its FFO for FY22 to be over 12.6 Australian
cents per security  urn:newsml:reuters.com:*:nL4N2Y704N  
    ** Says it hikes VCX's FY22 net profit view by 2.1% to
A$575.6 mln ($399.87 mln)
    ** Six of 13 analysts rate the stock 'buy', five rate it
'hold' and two 'sell', their median PT is A$2.00 - Refinitiv
Eikon 


($1 = 1.4395 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Sandra
Maler)
 ((tejaswi.marthi@thomsonreuters.com))