Multiplex Group (MXG) Stock Recommendation

Multiplex Group (MXG) has an unchanged Neutral 2 stock recommendation and a share price target of $3.72 from stock analyst UBS. They determined their price target with a "DPS DCF with a SOTP approach yielding a not dissimilar outcome (c$3.65) when adjusting for the change in debt costs that would occur under a possible Trust/Corp spilt." The analsyst note that " MXG confirmed (1) all construction projects ex-Wembley are profitable; & (2) re-valns in 1H07 could boost Trust NTA c18c to c$3.03; & (3) the Wembley settlement has financiers' approval (note we see potential for upside above assumed £50m claims). MXG also said it was reviewing its capital structure." UBS expects that Muliplex may move to accelerate its sell-down of Trust assets into funds & discuss several possibilities. "Conceptually this would be a logical outcome & is consistent with prior comments, just faster than expected. We see several possibilities including an in-specie distribution of units, a de-stapling or the Trust becoming a collection of anchor stakes. However we also foresee complexities including (1) the re-capitalising of the Corp (net assets Jun'06 $126m); (2) the un-winding of the $1.2bn inter-co. loan; & (3) the implications for various debt instruments."

Multiplex Group Limited is listed on the Australian Stock Exchange (ASX) under stock code MXG. You can view their investor website here. MXG was listed on the ASX on 2 December, 2003. The Multiplex Group is an integrated property group with operations in construction, property development, facilities management and property funds management. The Group will also hold a portfolio of investment grade properties initially comprising commercial and retail properties. You can view previous news and stock recommendation about Mulitplex (MXG). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!