Cedar Woods Properties

About the author:

Author name:

By Scott Murdoch

Job title:

Senior Analyst

Date posted:

06 May 2014, 10:54 AM

Sectors Covered:

Diversified Financials, Professional Services

Cedar Woods Properties (CWP) entry into Queensland looks to tick a lot of boxes, with a quality large scale project in Upper Kedron secured. Medium-term strategic benefits include geographic diversification, increased scale, heightened earnings certainty into FY16+ and stronger medium/long term growth potential.

Key points

• CWP is well placed to deliver earnings growth into FY17+ that is not reliant on further acquisitions or cyclical recovery. The company is conservatively geared, allowing for additional growth opportunities to be added over time.
• A very strong track record of delivering growth through the cycle and consistent dividend payments.
• The stock is trading below most peer multiples yet it offers higher earnings certainty, solid visible growth, conservative gearing and a proven management team.

We maintain our Add recommendation and raise our share price target to A$7.72 (previously $7.60).

More information

Morgans clients can access our detailed report on Cedar Woods Properties (CWP). If you are interested in finding out more please contact your nearest Morgans office.

Disclaimer(s): Morgans Corporate Limited is Joint Lead Manager to the Placement of Cedar Woods Properties and will receive fees in this regard.

The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.