“Our dividend discount model (DDM)-based price target assumes 2.8% risk-free rate (from 2.1%) and 8% cost of equity,” Lim says in his June 20 report.
UBS analyst Michael Lim has downgraded Suntec REIT to “sell” from “buy” as he sees the REIT as being most exposed to rising funding costs among the counters the brokerage covers.
Lim has also lowered his target price on Suntec REIT to $1.52 from $1.70 previously.
