The Goodman Group (ASX: GMG) share price has continued its slide on Thursday.
At one stage today, the integrated property company’s shares dropped to a two-year low of $15.57.
This means the Goodman share price is now down 41% since the start of the year.
Is the Goodman share price weakness a buying opportunity?
While Goodman’s shares are seemingly out of favour with investors right now, it’s quite the opposite with brokers.
A large number of Australia’s leading brokers have the equivalent of buy ratings on its shares with price targets significantly higher than where the Goodman share price trades today.
For example, the team at Citi has a buy rating and $23.50 price target on its shares. This implies potential upside of 50% for investors. Citi commented:
While risks are rising against a higher interest rate backdrop, we retain Buy given the strong underlying rent growth (rents on average -20% below market), embedded performance fees as well as the best balance sheet in the sector, which could see GMG outperforming its peers.
Who else is bullish?
This sentiment was echoed by the team at Goldman Sachs, which currently has a buy rating and $25.40 price target on its shares.
This suggests even greater upside for the Goodman share price of 63% over the next 12 months. Goldman said:
We expect solid rental growth as demand for high quality logistics space continues to outpace available supply. Although the macro environment remains challenged, we believe there is upside risk to its conservative guidance as the Group has historically “Guided light”, coming in ahead of initial estimates. Given GMG’s preference to own, develop and manage high-quality industrial assets in key infill markets globally, we believe it is well-positioned to capture market rental growth, which when coupled with elevated investment demand for industrial assets will assist in contributing to AUM growth over time.
The post Goodman share price hits two-year low: Time to buy? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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