The $67 billion ASX 200 stock 'still trading at a discount'

A leading expert recommends buying the dip on this $67 billion ASX 200 company.

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S&P/ASX 200 Index (ASX: XJO) stock Goodman Group (ASX: GMG) is marching higher today.

Shares in the integrated property group closed yesterday trading for $32.99. In afternoon trade on Wednesday, shares are changing hands for $33.20 apiece, up 0.6%.

That sees shares down 7.8% in 2025. Longer-term, the stock is up 121% over five years, and the company now commands a market cap of $67.4 billion.

Atop the potential for future share price growth, the ASX 200 stock also trades on a 0.9% unfranked trailing dividend yield.

Speaking of potential share price growth, Baker Young's Toby Grimm recently ran his slide rule over the property giant, and he liked what he saw (courtesy of The Bull).

Should I buy Goodman shares today?

"Goodman is a global industrial property group," said Grimm, who has a buy recommendation on the ASX 200 stock.

"News flow from international and domestic data centre customers and developers remains highly supportive," he said.

According to Grimm:

We believe the well-timed and successful completion of its $4 billion institutional placement underpins Goodman's near-term investment requirements while maintaining relatively low debt levels.

And he noted Goodman stock is still trading below its capital raising price.

"With the stock still trading at a discount on May 29 to its capital raising price of $33.50, we view weakness as a buying opportunity," Grimm said.

What's been happening with the ASX 200 stock?

Goodman completed the $4 billion capital raising Grimm mentioned above on 20 February.

With the issue price 6.9% below the share price on the prior trading day, investors responded by sending the ASX 200 stock down 5.0% on the day.

Goodman CEO Greg Goodman said the success of the capital raise "highlights continued confidence in Goodman's established strategy of providing essential infrastructure for the digital economy".

He added:

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.

At the company's third-quarter update, released on 28 May, the ASX 200 stock reported that data centres under construction represent more than half of its $13.7 billion worth of work in progress.

"In the data centre space, we continue to see significant capex growth from hyperscale operators as they work to meet rising demand for cloud and AI services," Greg Goodman said last week.

The CEO continued:

With a globally diverse portfolio of identified development opportunities and a 5GW power bank concentrated in low latency, metropolitan areas, the group is well placed to support these growing requirements.

Goodman shares closed up 0.9% on the day it reported the third-quarter results.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. 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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