Share price has been FLAT for the last 2 years. Too cheap
Strong Volume
Fri 20 m Thus 15 m Wed 13m
Weekly V 88.68 m
Monthly V 166.57 m
Yearly V 448.32 m
Comparison b/t August 2015 vs Feb 2016
Revenue down 2.15 b vs 1.17 b
Profit up 454.8 m vs 472.7 m
EPS up 12.3 c vs 12.8 c (locked in 12.7 - 13 c)
EBIT down 63% (2015 - 2016) 57% (2016 -2017)
Occupant rate up 96.5% vs 97%
Lease period up 4.5 yrs vs 5.6 yrs
Distribution forecast 9.7 - 9.9 c/share
Dividend status. Ex-divi
Settlement to be finalized for the sale of NSW Woolworth for 336.45 m at end of February 2016
Divi to be paid to investors registered on December 2015 at 4.7 c in February
Price to Earning multiple 14 times
MD Susan said " sales and prices are expected to grow at slower pace but Mirvac's market is supported by positive fundamental"
Lower interest rate for longer, lower AUD and ZIRP /NIRP interest rate policy around the world are extremely positive for property sector albeit bubbles in the sector. Time to spend and to build the economy.
Feb 12 2016 at 4:38 PM
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Mirvac will develop the the Commonwealth Bank's new offices on the Australian Technology Park in inner Sydney. Supplied
by Matthew Cranston
The share price of diversified property group Mirvac is expected to keep rising according to leading analysts because strong future residential sales will bolster earnings and a review of the business will finally be concluded helping to realise the group's true value.
Mirvac, which closed steady at $1.83 on Friday, reported a 69 per cent increase in net profit for the first half of fiscal 2016 on Thursday and said that earnings from apartment sales would be much higher in the second half – even though the group acknowledges that the housing boom has passed an "inflection point."
"A bunching of settlements at major projects ... is a swing factor, however Mirvac's internal construction capability and track record of delivery provide some comfort on this front," Credit Suisse's Ian Randall said.
He said that he thought Mirvac was being held back by strategic uncertainty and that questions were being asked about "what [Mirvac] actually wants to be."
"Mirvac simply looks too cheap to us." Credit Suisse has a target price of $2.06 on the stock.
UBS James Druce said Mirvac reported first half earnings below UBS' expectations. "But we are not concerned with the skew given pre-sales." UBS has a price target of $2.12.
CLSA's Sholto Maconochie was slightly more bearish, lowering the price target by 2 per cent to $2.07.
"We see limited near-term risk to earnings and estimate a two-year earnings per share compound annual growth return of 4.7 per cent, but slightly lower our outer-year assumptions to reflect potential softness in residential markets."
(20min delay)
