SINGAPORE (July 25): DBS has downgraded Ascendas India Trust (a-iTrust) to “hold” from “buy” with a lower target price of $1.15.
In a Tuesday report, analyst Mervin Song says unit price of the REIT has rallied over 30% since the stock was upgraded to “buy” 18 months ago.
But he expects the share price to “pause for breath” given weaker-than-expected 1Q18 results and limited upside to the analyst’s rating.
However, Song still remains positive on a-iTrust’s outlook on the back of positive rental reversions given favourable demand and supply dynamics in its key markets as well as the ramp-up of earnings from recently acquired or soon to be completed development.
Song believes that has been largely priced in for now.
“Near term, investors should look out for the finalisation of its proposed acquisition of a warehouse portfolio, as a potential re-entry point,” says Song.
As at 11.20am, units of a-iTrust are trading at $1.15.
