BUZZ-Morgan Stanley positive on HMC Capital's $1.29 bln data center deal

Reuters10-25

** Analysts at Morgan Stanley say HMC Capital's acquisition of Global Switch Australia will ultimately be considered a positive, assuming the successful launch of its proposed listed (DigiCo) and unlisted (HDIF) data centre funds

** Asset manager HMC Capital had also announced an A$300 mln ($199.08 mln) share placement at A$8.75 per share to fund the A$1.94 bln ($1.29 bln) acquisition, a move to tap into the highly attractive data center market

** Brokerage estimates the acquisition could add A$20 mln -$30 mln+ to FY25 forecast earnings assuming typical transactions and establishment fees

** Morgan Stanley raises PT to A$9.10 from A$8.80, and notes co's assets under management will be boosted by around A$2 bln

** Two of 10 analysts rate the stock "buy", six "hold," and two "sell"; their median PT is A$8.15 –– LSEG data

** Stock has risen 49.5% YTD as of last close

($1 = 1.5069 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.Kumar@thomsonreuters.com;))

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