Bunnings downgraded to Hold
Recommendation
The share price of Bunnings Warehouse Property Trust has been surprisingly volatile over the past year for such a predictable business. After rising from $2.19 to a peak of $2.64 in July last year, it then fell to a low of $2.14 last Christmas before climbing back to $2.59.
There’s been no material announcements since we upgraded the stock in Bunnings upgraded to Buy on 17 Dec 13 (Buy – $2.18), other than the company issued $200m of medium term notes expiring in 2019 at a low rate of 4.5%. Bunnings currently offers a pedestrian 5.4% yield, so with the share price increasing 19% since 17 Dec 13 and sitting comfortably above our recommended Buy price we’re downgrading to HOLD.
Note: Our Income Portfolio owns shares in BWP Trust.