Does Dexus (DXS) look cheap to MM?
Great job James and the team! I get so much out of all your analysis. Dexus (DXS) - your thoughts on this business which looks cheap at the moment? Thanks Kim
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Answer
Hi Kim,
Dexus (DXS) like much of the Real Estate Sector does look cheap at current levels i.e. $8.26 trading on a PE of 12x which is the cheapest it has been since the COVID low where it got to 11.5x earnings. This is a stock we’ve owned in the past and know well, we’re just not sure what the catalyst will be to turn around the share price in the short term.
More broadly, we are looking to our increase to property for our Flagship Growth Portfolio with GPT Group (GPT) under $3.90 being our prime target but DXS is on our radar. Conversely, we may take the opportunity to increase our Goodman Group (GMG) position into weakness around $16.50 having trimmed it as it challenged $20 last month.
In summary, we do like the quality real estate stocks into further weakness and we are likely to buy/add to one of these names.
