The revised TP implies a target price-to-book value (P/Bv) of 0.8x the REI’s historical mean since 2019. FHT’s current P/Bv of 0.67x is around 1 standard deviation (s.d.) below the mean.
Maybank Securities analyst Li Jialin, who is taking over coverage of Frasers Hospitality Trust (FHT) for the brokerage, has upgraded her call to “buy “ from “hold”, with a lower target price (TP) of 54 cents.
Li has lowered her dividend discount model (DDM) based TP to 54 cents from the previous target of 55 cents due to inflation and rising interest rates, with a 7% cost of equity (COE) and long-term growth of 3%.
