At the current share price and its relatively low weighted average cost of capital (WACC), the analysts are of the view that acquisitions should be “highly accretive”.
DBS Group Research analysts Dale Lai, Geraldine Wong, Derek Tan and Rachel Tan have upgraded their rating on Keppel DC REIT (KDC REIT) to “buy” with a target price of $3, after it announced “surprise acquisitions”.
They highlight that the announcement of the acquisition of Guangdong Data Centre and the right of first refusal (ROFR) granted for the other five data centres within the campus has reignited optimism on KDC REIT’s growth trajectory.
