S&P/ASX 200 Index (ASX: XJO) stock Goodman Group (ASX: GMG) has come under significant selling pressure in 2025.
Shares in the integrated property group are down 1.6% in afternoon trade today, changing hands for $28.84 apiece. With 2.03 billion shares outstanding, Goodman now commands a market cap of $58.6 billion.
Today's fall comes amid Monday's broader market sell-off, with the benchmark Aussie index down 1.5% at the same time.
And it now sees the ASX 200 stock down 19.8% year to date, trailing the 4.2% loss posted by the benchmark.
But with Goodmand having recently completed a major capital raise and increasing its exposure to data centres and the fast-growing artificial intelligence (AI) phenomenon, Sequoia Wealth Management's Peter Day forecasts better days ahead (courtesy of The Bull).
Time to buy the beaten-down ASX 200 stock?
"Goodman is an integrated industrial property group," said Day, who has a buy recommendation on the ASX 200 stock.
"The company's shares have largely pulled back due to a recent $4.4 billion capital raising to fund its data centre strategy," he noted.
Indeed, the Goodman share price dropped 5.0% on 20 February, following the company's capital raising announcement. That pressure came because the company issued new shares at $33.50 apiece, or 6.9% below the Goodman share price prior to the announcement.
Commenting on the capital raising on the day, CEO Greg Goodman said:
The funds raised will enable us to optimise the opportunities we're creating over the long term, particularly through our data centre offering, and provide greater financial and operational flexibility to manage the next phase of growth.
And it's this data centre focus, in particular, that Sequoia's Day believes will drive earnings growth for the ASX 200 stock.
According to Day:
Despite the near-term equity dilution from the capital raise, GMG's earnings per share growth outlook remains attractive. It's underpinned by its data centre pipeline, which will benefit from strong sector tailwinds that includes cloud migration and artificial intelligence.
We expect GMG to fund future developments with recycled capital that includes existing liquidity, retained earnings and a modest amount of leverage.
What's the latest with Goodman's data centre operations?
Earlier this month, the ASX 200 stock reported that it had started construction of LAX01, a 49.5 MW data centre in the US state of California.
The company noted that the data centre is strategically located within the Los Angeles metro area.
"LAX01 continues the build out of our 5 GW global power bank supported by our strong balance sheet," Goodman noted,
"It's a key part of the 500MW program of new projects we expect to commence by June 2026 across North America, Continental Europe, Australia, Japan, and Hong Kong," he added.
Atop potential share price gains, the ASX 200 stock also trades on a 1.0% unfranked trailing dividend yield.
