This is quite contradicatory to other anaylsts, do they know something we don't.
GMG should respond or they are telling us lies
Macquarie rates GMG as Downgrade to Neutral from Outperform - While Goodman has suggested its result should be in line with guidance, the broker fears the situation is deteriorating for the group. The industrial sector reprensents an opportunity for larger property value write-downs than retail or office, the broker notes, and Goodman is facing a likely dividend cut and at least an underwritten DRP. GMG is battling with high gearing. The broker has reduced forecast earnings by 43% in FY09 and 71% in FY10-11. A saving grace is that even assuming a div cut and DRP, GMG offers a 17.6% FY10 yield, the broker notes. But the broker believes it will be two years before the market recovers for the group and has downgraded to Neutral.
Target falls from $3.15 to $0.59.
Target price is $0.59 Current Price is $0.54 Difference:$0.05 - (brackets indicate current price is over target). If GMG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. Macquarie forecasts a full year FY09 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: 0.5
GMG Price at posting:
36.3¢ Sentiment: Hold Disclosure: Held
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