The revised target price is based on a risk-free rate of 3% and beta of 0.8. It also implies a price to net asset value (P/NAV) of 1.15x, which is close to 1 standard deviations (s.d.) above MPACT’s historical mean (on NAV at its pre-Covid) levels, explain analysts Rachel Tan and Derek Tan. The analysts’ new target price also implies a dividend yield of 5%.
DBS Group Research is re-instating its coverage on Mapletree Pan Asia Commercial Trust (MPACT) with a “buy” call and a target price of $2.30.
The target price, which is lower than the brokerage’s last target price estimate of $2.45, represents an upside of 19% from MPACT’s unit price of $1.93 as at the close of Sept 13.
