Given GPT Group’s relatively high exposure to Victoria, Credit Suisse suspects part of its recent rally could be on the back of the re-opening.
No 2020 guidance has been provided although Credit Suisse expects 2021 earnings will be meaningfully stronger without new government-mandated restrictions. Earnings headwinds remain in the retail and CBD office segments for the sector as a whole.
GPT is seeking to raise its weighting to the logistics sector while lowering its exposure to office.
The broker downgrades to Neutral from Outperform in the wake of the rally and raises the target to $4.83 from $4.29.
Sector: Real Estate.
Target price is $4.83.Current Price is $4.66. Difference: $0.17 – (brackets indicate current price is over target). If GPT meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
