Goodman Group (ASX: GMG) shares are a popular option for blue chip investors.
But is the ASX 200 share a buy following its FY 2025 results? Let's see what Bell Potter is saying about the industrial property giant.
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What is Bell Potter saying about this ASX 200 share?
Bell Potter was pleased with the company's performance in FY 2025, which was in line with the market's expectations and slightly ahead of its guidance. It said:
FY25 result; FY26 starts as expected GMG announced its FY25 result with operating EPS of 118.0c in-line with BPe and VA consensus, and a small beat vs. guidance for +9% growth y/y. GMG has established FY26 operating EPS guidance of +9% y/y which implies 128.6c (BPe 129.9c (+10% growth y/y), VA consensus 131.2c (+11% growth y/y)), and DPS guidance of 30.0c (in line with BPe, VA consensus for 30.6c).
And while there were no major updates in respect to its data centres, the broker remains confident that it is just a matter of time. It said:
Key takeouts included: (1) Data Centres – Powerbank remains 5.0GW (as per prior), with secured power of 2.7GW increasing marginally from 2.6GW prior and stabilised book increasing to 0.7GW (was 0.5GW). No further updates for DCs regarding leasing, although LAX1 and PAR are underway.
[…] Partnerships – Alongside customers (DC tenant success), roll out of regional Partnership co-investments is key for FY26 momentum with GMG looking towards next steps in Aus and Europe, as Global fund ambitions are replaced by Regional focus.
In response to the results, the broker has made a few minor changes to its estimates, which have led to a slightly higher valuation. It said:
Earnings changes We adjust our FY26-28 EPS estimates by -1% to +1% reflecting: (1) divisionals estimates; (2) impact of half year actuals; and (3) capex deployment and lease up for DCs. Our target price is based on 50 / 50 blend of our SOTP and DCF valuations.
Time to buy
According to the note, the broker has retained its buy rating on the ASX 200 share with an improved price target of $40.75 (from $39.35). Based on its current share price of $33.90, this implies potential upside of 20% over the next 12 months.
Commenting on its buy recommendation, the broker said:
Investment view: Buy No change to our Buy recommendation post recent initiation. GMG is into it and on with it as its investment phase for its DC build-out program gathers pace, with early phase of recognition starting to work through, evidenced in YoC which climbed to 7.5% (was 6.7%) weighted up by return size and dollar quantum of fully fitted DCs which was a notable step change intra-period. We expect to see some volatility in the SP next 6-12mths with milestones on foot more important for longer-term gains.
