In a Monday report, OCBC lead analyst Andy Wong says he believes CMT investors can consider locking in some profits at the REIT’s current price level, considering how its FY19F distribution yield of 5.3% is approximately 0.9 standard deviations below its five-year mean.
SINGAPORE (July 23): OCBC Investment Research and CGS-CIMB Securities have downgraded their ratings on CapitaLand Mall Trust (CMT) to “hold” from “buy” and “add” previously after the trust’s 2Q18 results came in line with both research houses’ expectations.
While OCBC has revised its fair value estimate down to $2.10 from $2.26 after lowering its terminal growth rate assumption to 1.5% from 2% in light of ongoing macroeconomic uncertainties, CGS-CIMB’s lower target price of $2.21 compared to $2.25 previously comes on the back of a higher risk-free rate to align with that of the market’s.
