Charter Hall shares climb as Morgan Stanley upgrades outlook
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The news: Property investor Charter Hall Group was one of the best performing ASX 200 stocks in morning trade, after Morgan Stanley said the company was its 'top pick' in the Australian property market
The numbers: Charter Hall shares were up 2.8% to $18.67 at 11:50am AEST, having gained more than 50% over the last 12 months.
Macquarie reiterated its 'overweight' rating on the stock and hiked its its price target from $20 to $22.60.
Macquarie analysts noted that Charter Hall shares are up 27% since the turn of the year and said they expect its strong performance to continue. The stock has also outperformed the ASX 200 REIT index by 24% in 2025, they noted.
The analysts also flagged that Charter Hall could grow its property assets under management (AUM) from its current level of $66.4 billion to $89 billion by the 2027 financial year, and deliver performance and transaction fees of $115 million in that year.
The context: Macquarie's analysts said Charter Hall is currently raising several new funds across different sectors, and also ramping up developments, resulting in greater inflows, more transactions, and higher medium-term performance fees.
What they said: "As global rates decline and asset values trough, we are only at the infancy of a multi-year upwards AUM and earnings trajectory period," the analysts said.
The source: Morgan Stanley research
