GPT Group shares are up 13% in the last week, Morgan Stanley notes, outperforming the ASX200 REITs by 6% over the same period. The global rate outlook has softened, and GPT is a key beneficiary of the trade into rate-sensitive stocks, given its sector proxy split of 35/35/30 Office/Retail/Industrial.

GPT is now at a premium to the valuation implied by pure-play peers in each sector, at the top end of its typical trading range. Management changes could unlock opportunity, the broker suggests, however on a relative basis, upside may be limited.

Equal-weight and $4.70 target retained. Industry view: In Line.

Sector: Real Estate.

Target price is $4.70.Current Price is $4.61. Difference: $0.09 - (brackets indicate current price is over target). If GPT meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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