The GMG share price has endured a tough year after raising $4bn at $33.50 in February for data centre expansion. This was not ideal timing, as the sector came under pressure in the ensuing weeks due to the questions being raised around demand for data centres following the DeepSeek announcements. Greg Goodman is a shrewd operator, and we are comfortable following him for his proven expertise. At this stage, the recent negativity around AI and tariffs looks to have afforded investors a great entry opportunity into the stock – we topped up our position in early March, although we missed out on the final washout. Still, we continue to like our position as the stock rallies back above $30.
GMG is now trading on a cheaper multiple than before its capital raise, prior to its move into data centres, offering relative value compared to its global peers. We remain fans of GMG’s industrial business and future demand for data centres – note February’s capital raise, which, while large, only equated to ~6% of GMG’s market cap. We believe GMG is still reasonably priced, trading over 10% below its capital raise, although this area is likely to cap the stock without further bullish news.
- We remain bullish on GMG, although pushing back above $35 may take time: we hold GMG in our Active Growth Portfolio.
MM remains long and bullish on GMG
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