Mirvac Group has confirmed the sell-down of a -66% stake in its 55 Pitt St office development to Mitsui Fudosan Australia, and has reaffirmed FY24 EPS guidance of between 14.0-14.3c.

The sale shores-up commercial development profits across FY25-27, and removes concerns about a FY24 guidance miss, suggests Morgan Stanley.

Overall guidance was maintained as commercial development profits may come in above the previous $120m indication, helping make up for slightly lower residential settlement guidance, explains the broker.

Equal-weight. The target is $2.35. Industry view: In-Line.

Sector: Real Estate.

Target price is $2.35.Current Price is $1.87. Difference: $0.48 - (brackets indicate current price is over target). If MGR meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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