Morgan Stanley rates SGP as Equal-weight

Published: 2026-05-17 20:31:09 ET MS

Published on 05/17/2026 at 08:31 pm EDT

Morgan Stanley notes recent Federal Budget tax changes are designed to support new housing supply, which should benefit developers such as Stockland and Mirvac Group over time.

However, the broker believes near-term conditions remain challenging, with lower property prices, higher interest rates and tighter development margins likely to offset some of the policy tailwinds.

Reviewing FY27 assumptions, Morgan Stanley suggests Stockland's residential settlements could decline year-on-year.

The target for Stockland is lowered to $4.90 from $5.05. Industry View: In-Line.

Sector: Real Estate.

Target price is $4.90.Current Price is $3.97. Difference: $0.93 - (brackets indicate current price is over target). If SGP meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).