BUZZ-Goodman Group's DeepSeek-linked fall a 'reality check', Morningstar says

Reuters
01-29
BUZZ-Goodman Group's DeepSeek-linked fall a 'reality check', Morningstar says

** Analysts at Morningstar call Goodman Group's GMG.AX decline on Tuesday "a reality check" on data center hype

** The data center operator's stock closed 8.2% lower on Tuesday, as investors feared the emergence of a low-cost AI model from Chinese startup DeepSeek would reduce infrastructure spending

** Morningstar maintains a fair value estimate of A$27.00 on GMG, which closed at A$35.00 on Tuesday

** "While the security still screens as overvalued, the DeepSeek launch sends a reminder of the dangers of high expectations with respect to a listed entity's exposure to the fast-developing AI industry" - Morningstar

** Six of 10 analysts rate the stock "buy" or higher, three "hold"; their median PT is A$40, according to data compiled by LSEG

** Stock down 1.8% this year

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com;))

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