For the third (material) time in three years investors in Abacus Property have to accept shorter-term earnings dilution in exchange for longer-term growth potential, notes Credit Suisse, commenting upon an equity raising.
The group announced a $200m capital raise from institutions to fund development and acquisitions, and a further $15m may be raised via a shareholder purchase plan. The broker maintains its Neutral rating and $3.51 target price.
Sector: Real Estate.
Target price is $3.51.Current Price is $3.35. Difference: $0.16 – (brackets indicate current price is over target). If ABP meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
