Peet (ASX:PPC) has upgraded its guidance as macroeconomic conditions in Australia have driven strong recent land and unit sale prices, according to a Thursday Euroz Hartleys note.

The company on Thursday said it expects fiscal year 2026 net profit after tax of between AU$74 million and AU$78 million, representing growth of 26% to 34% last year, supported by strong operational performance and favorable macroeconomic conditions.

The combination of overseas migration, a positive labor market, a structural deficit in Australian housing supply throughout most regions, and government stimulus fuelling demand, particularly for entry-level buyers, has clearly resulted in a strong demand response and seemingly an increasing "fear of missing out," the note added.

After the upgrade, the company is trading on a fiscal year 2026 price-to-earnings multiple of 11.7 times, which is a discount compared with peers that trade at an average of around 18 times, the research firm added.

Euroz Hartleys kept a buy rating on Peet with an under review price target of AU$2.24.