Resolution derides 'unhinged' Goodman valuation and HMC's 'DodgyCo'
Andrew Parsons did not hold back on two major data centre stocks at a conference hosted by investment incubator Pinnacle in Sydney this week.
One of Australia’s largest real asset specialists has described the ASX investment community's obsession with property giant Goodman Group as "unhinged" and jokingly derided HMC's data centre owner DigiCo as "DodgyCo".
Andrew Parsons, the chief investment officer of Resolution Capital, praised the “sensational” management team at the helm of Goodman but said the integrated property group's inflated $72 billion market cap was poised to burn new investors.
“The equities market's enthusiasm for Goodman is extreme. It is unhinged from reality. The valuation, when we look around the world at comparable stocks, we think that Goodman is 20 to 30% overpriced,” Parsons told a packed conference room at the Pinnacle Investment Summit in Sydney.
He added that Resolution, which manages more than $14 billion in real assets, had “dabbled” in the stock but had otherwise missed out on its rise. Goodman shares have gained 75% over the last two years and have almost tripled since the depths of the COVID-19 pandemic.
