The outlook for the property division in western Sydney is bright, UBS assesses. The new airport, due in 2026, and the proposed developments are leading to escalating land values.
With this backdrop, the company has reiterated an intention to realise value through balancing the needs of existing and future operations with what land could be sold.
UBS remains confident in the long-term earnings outlook although, given the improving outlook for land prices and a limited need for capital any time soon, suspects realisation of value will remain long dated.
Sell rating maintained. Target rises to $3.24 from $2.70.
Sector: Materials.
Target price is $3.24.Current Price is $3.98. Difference: ($0.74) – (brackets indicate current price is over target). If CSR meets the UBS target it will return approximately -23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
