Arena REIT shares lift after full-year earnings amid analyst support
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The news: Shares in Arena REIT lifted in afternoon trade after it reported 42% full-year profit growth on Wednesday and a CEO transition, with analysts at Macquarie and Jarden lifting their target price.
The numbers: At 1:17pm AEST, shares in Arena REIT had fallen 4.2% to $3.89.
Macquarie analysts lifted their 12-month target price on the stock from $3.96 to $4.01 and retained an ‘outperform’ rating, while Jarden analysts lifted their target price from $4.55 to $4.60 and retained a ‘buy’ rating.
The context: Jarden analysts said that Arena REIT “provides an attractive yield (5.1%) despite trading at a 10% premium to updated net tangible assets, and is on track to deliver above average earnings per share/distributions per unit growth in the medium term in a sector supported by multiple structural tailwinds”.
Macquarie analysts said they “remain attracted to elevated and sustainable earnings per share growth profile” of Arena.
The sources: Macquarie research, Jarden research
