FY19 results were at the lower end of guidance and the outlook for FY20 is better than Credit Suisse expected as asset sales are no longer proceeding.
Overall, comparable retail sales growth was 2.1% after stripping out an extra week of trading reported by some tenants. Supermarkets were stronger while specialties were softer but still positive. Unsurprisingly department stores were weaker.
Credit Suisse maintains a Neutral rating and reduces the target to $2.51 from $2.67. The broker increases FY20 and FY21 estimates for earnings by 4% and 1% respectively.
Sector: Real Estate.
Target price is $2.51.Current Price is $2.48. Difference: $0.03 – (brackets indicate current price is over target). If VCX meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
