Scentre Group's first half earnings missed Morgan Stanley's estimates. The broker suspects underlying rent revenue may stagnate, even adjusted for pandemic-related relief.

Yet leasing spreads were better than in 2020 and overall portfolio sales were up 0.9%, so the broker assesses some degree of "snapback" prior to the current lockdowns.

The Equal-Weight rating is retained. Target is lowered to $2.90 from $2.98. Industry view: In-line.

Sector: Real Estate.

Target price is $2.90.Current Price is $2.77. Difference: $0.13 - (brackets indicate current price is over target). If SCG meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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