After a series of recent takeover offers for listed Australian infrastructure companies, Morgan Stanley strategists undertake a comparison of recent takeover multiples to where REIT's are trading. This is considered appropriate as both sectors contain bond-proxy-type stocks.

Scentre Group is only one of three stocks in the REIT sector under the broker's coverage that has relevant multiples trading below the infrastructure takeover multiples. The Equal-Weight rating and $2.90 target price are maintained. Industry view: In-line.

Sector: Real Estate.

Target price is $2.90.Current Price is $2.95. Difference: ($0.05) - (brackets indicate current price is over target). If SCG meets the Morgan Stanley target it will return approximately -2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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