GTY - Macquarie rates the stock as Neutral
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The company has provided an update on FY17 guidance, which implies better pricing but delays with higher margin sales. Macquarie reduces FY17 forecasts for earnings per share by -10.4% and FY18 by -0.4%.
Macquarie envisages long-term growth in the sector on the back of positive trends such as an ageing population, financial pressure on retirees and housing affordability.
Nevertheless, the broker does not believe the share price will outperform until the market is confident that earnings have found a bottom. Rating is downgraded to Neutral from Outperform. Target is $2.19.
Sector: Real Estate.
Target price is $2.19.Current Price is $2.04. Difference: $0.15 - (brackets indicate current price is over target). If GTY meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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