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ASK: Fair Value Will Likely Hold As Takeover Premium Talk Builds

ASK: Consortium Interest Will Drive Positive Sentiment in Coming Months

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AnalystConsensusTarget
Not Invested
Published 17 Aug 2025

Update shared on 12 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
33.5%
7D
4.0%

Analysts have slightly lowered their price target on Abacus Storage King by A$0.00, keeping fair value effectively unchanged as modest tweaks to discount rate, growth, and margin assumptions leave the long term valuation profile intact.

What's in the News

  • Speculation is building that Brookfield and GIC Private Limited, fresh from a $4 billion buyout of National Storage REIT, are informally engaging with Abacus Storage King over a potential future takeover, though any deal is not expected to be imminent (Key Developments).
  • Abacus Storage King is reportedly seeking around a 15% premium to its net tangible assets of A$1.74 per share, implying a possible transaction size of about A$2.63 billion, or A$2.26 per share, if a buyout proceeds (Key Developments).
  • The listed Abacus Group is considering internalising the management of Abacus Storage King, a move that could simplify governance and potentially support a future control transaction (Key Developments).
  • Brookfield and GIC are expected to retain National Storage REIT's 10% stake in Abacus Storage King as a strategic foothold for a possible deal in the future (Key Developments).
  • Self storage assets, including Abacus Storage King's portfolio, continue to be viewed as resilient in a real estate downturn, supported by relatively low operating costs and robust margins (Key Developments).

Valuation Changes

  • Fair Value: Unchanged at A$1.58 per share, indicating no material revision to the long term intrinsic valuation.
  • Discount Rate: Stable at 7.76%, reflecting the same required return in the model.
  • Revenue Growth: Effectively unchanged at about 5.13% per year, suggesting a stable outlook for top line expansion.
  • Net Profit Margin: Steady at roughly 43.18%, indicating no meaningful shift in expected profitability assumptions.
  • Future P/E: Edged down slightly from 20.95x to 20.94x, implying a marginally lower valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.