HOLD

Sunday Herald Sun - - Finance -

Man­age­ment’s strat­egy is im­prov­ing the earn­ings pro­file, de-risk­ing the busi­ness and shift­ing into an un­der­pen­e­trated mar­ket seg­ment. Good­man Group is well placed to keep de­liv­er­ing at­trac­tive earn­ings growth over the medium term. From a val­u­a­tion per­spec­tive, we do not see the stock as cheap. Our sell rec­om­men­da­tion is not a re­flec­tion of the qual­ity of the busi­ness, earn­ings out­look or cap­i­tal po­si­tion. It is sim­ply that we now see the stock as be­ing ex­pen­sive. The 2019 fi­nan­cial year out­look doesn’t de­serve a price-to-earn­ings ra­tio of about 21, es­pe­cially with com­peti­tors such as Coles, Aldi, Costco and IGA all on an im­prov­ing trend.

$1.66 $10.25 $3.49 $28.92

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