Morgan Stanley rates MGR as Equal-weight

Published: 2026-05-17 20:31:07 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.

The target price for Mirvac Group falls by -5c to $2.05 on Morgan Stanley's revised development assumptions. Equal-weight rating unchanged. Industry View: In-Line.

The analysts highlight Mirvac and Stockland's residential pre-sales have typically been 65%-70% correlated to home prices.

Sector: Real Estate.

Target price is $2.05.Current Price is $1.73. Difference: $0.33 - (brackets indicate current price is over target). If MGR meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).