Mirvac Group's (ASX:MGR) fiscal 2027 operating earnings per share growth guidance of 2.3% to 3.9% is "solid" in a tough residential property backdrop, Jefferies said in a Wednesday note.
Its settlements guidance of 2,800 to 3,100 lots, with 63% secured, beat consensus estimates at 2,347 materially. Gross margins of 23.9% are back above the 18% to 22% target, up from 17.5% in fiscal 2025, with all impaired projects now settled.
The firm's fiscal 2026 operating profit was AU$508 million, 1% below Jefferies' forecast of AU$514 million forecast. It called out a slow-down in sales activity and enquiry levels in the fourth fiscal quarter.
The brokerage reaffirmed Mirvac with a hold rating with a price target of AU$1.80.
Mirvac Group's shares jumped past 7% in recent Wednesday trade.