Morgan Stanley analyst Simon Chan maintained a Hold rating on GPT Group (GPTGF – Research Report) today and set a price target of A$4.60.
Geoff Meacham has given his Hold rating due to a combination of factors related to GPT Group’s stock performance compared to its peers. The analysis indicates that GPT Group’s share price tends to fluctuate within a narrow margin relative to its industry counterparts, specifically ranging from a 12% discount to a marginal 1% premium. This consistent performance pattern provides a predictable framework for investors, yet suggests limited opportunity for significant short-term gains, given the current close discount of -0.6% to its peers.
Furthermore, historical trends show that while GPT Group has the potential to outperform its peers, particularly in the second half of the calendar year, it has not traded at a premium since before 2020, and short-term outperformance following initial guidance statements is not typically observed. With the expectation of future financial results closely aligning with consensus forecasts, there appears to be little impetus for a positive re-rating in the near term, supporting the analyst’s decision to maintain a neutral Hold rating on GPT Group’s stock.
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GPT Group (GPTGF) Company Description:
GPT Group was listed in 1971 and is Australia’s oldest listed property trust. The business strategy is not particularly differentiated from peers, other than through its particularly conservative gearing and modest emphasis on development activity. The portfolio weighting to industrial is a major growth area for the firm, but is still minor at 12% of total revenue. GPT remains dominated by retail malls that generate about a third of its revenue, and another quarter from office.
