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Could you update your views on ABP & MTS

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Could you update your views on ABP & MTS

Hi MM, Can you please give your updated views on: 1) ABP following its 18.05.23 announcement on the proposed de-stapling, including what you rate it as currently and your preferred entry points/range. 2) Metcash following the sharp fall in its share price over the last week and a half or so (related to the recent Macquarie downgrade?). Thanks and regards,



A couple of topical picks here, our updated views are shown below:

1 Abacus Property (ABP) $2.59: We like ABP at the bottom of its trading range (here) believing that the market is completely underestimating the value of their self storage operations, as you say, a theme that the company has flagged recently as they float the concept of splitting these out into a separate entity. We are bullish from current levels.

2 Metcash Ltd (MTS)  $3.64: Has been sold off on signs that consumers are becoming more ‘price conscious’ and prioritising value over convenience. Research suggesting that MTS is losing some of the market share gains they captured during COVID, with Aldi being the net beneficiary. On 12x and a yield above 6%, with a looming dividend in July, we remain comfortable holders in our Income Portfolio. If we didn’t own, we would buy it here.

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Abacus Property Group (ABP)
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