While expectations around the quantum of rate cuts have eased, the next move is still highly likely to be down, which should be enough to push this property group higher. However, we are conscious of the high expectations after recent strength and overly optimistic investor expectations around the potential for interest rate cuts to flow through to improved sales/growth. SGP has been the market’s preferred “residential recovery” play with low gearing and capital partnerships in place, exposure to higher growth logistics and Manufactured Housing Estate (MHE) development and residential sales volumes expected to recover over FY25.
- We can see SGP making new 2024 highs into Christmas, although the risk/reward has deteriorated as the stock surged almost 20% in 2024.
MM is cautiously bullish SGP
Add To Hit List
