Given Morgan Stanley forecasts no interest rate cuts until early 2025, it's thought households will have to divert more money towards housing costs, resulting in less money to spend at malls.

Region Group does have exposure to stressed households, but more than 50% of income is driven by non-discretionary tenants (supermarkets etc), explains the broker. As a result, a resilient income stream is anticipated despite an expected retail slowdown.

The Equal-weight rating is maintained and the target rises to $2.30 from $2.25. Industry view: In-Line.

Sector: Real Estate.

Target price is $2.30.Current Price is $2.22. Difference: $0.08 - (brackets indicate current price is over target). If RGN meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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