Deutsche Bank 19/11/2009 1 Buy $0.70 11.1% The broker thinks Goodman Group is pretty hard done by when it comes to the market acknowledging the upside on offer. Deutsche believes both current pricing and consensus forecasts underestimate the positive operating leverage that is there. Sure, the broker's estimates assume that earnings from both development and funds management will remain below FY08 levels through FY14. Deutsche also expects the full conversion of outstanding prefs by June-11.
However, despite this dilution, Deutsche still expects the company to deliver average EPS growth of 9% per year from FY10 - FY14 as business gets back to normal. With the stock currently trading at 13.1x the broker's FY11 Adjusted Funds From Operations estimate vs a sector average of 15.9x, the Buy is maintained.
GMG Price at posting:
$3.15 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)