BUZZ-Morgans initiates coverage of Australia's GPT, sees earnings upside from pivot to fund manager

Reuters12-02
BUZZ-Morgans initiates coverage of Australia's GPT, sees earnings upside from pivot to fund manager

** Morgans initiates coverage of Australia's GPT Group GPT.AX at A$6.20 per share

** Brokerage says co's strategy to transition to a higher-return funds management platform from balance-sheet ownership could help AUM increase from A$37 billion ($24.23 billion) to >A$85 bln, driving earnings growth of 5-7% per annum

** Adds, valuation supported by stabilising interest rates, persistent supply constraints, and current share price reflecting nominal value attributed to the funds management business, which co expects will generate A$91m in EBIT in CY25F, representing value vs peers

** Flags domestic interest rate outlook as price risk, and adds partial divestments run the risk of reducing average asset quality

** Stock up 1.2%, bringing YTD gains to 27.9%

($1 = 1.5267 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment