First-half earnings were well ahead of expectations. This was driven by development and performance fees. Despite the beat on expectations being driven by non-recurring items, Macquarie suspects there is upside risk to FY20 guidance.
There is also a path for the funds management platform to generate stable earnings in the medium term. The broker upgrades to Neutral from Underperform. Target is reduced to $1.20 from $1.22.
Sector: Real Estate.
Target price is $1.20.Current Price is $1.12. Difference: $0.08 – (brackets indicate current price is over target). If CMW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
