Brokers' take

CDL Hospitality Trusts | Buy

Jan 29 close: S$1.80

Target price: S$1.86

DBS Group Research, Jan 29

IN FY2015, we expect a recovery in CDL Hospitality Trusts' earnings due to an improvement in overall/Chinese tourist arrivals into Singapore and contribution from the recently acquired Japanese hotels. However, Q1 2015 may see some softness, due to a combination of cautiousness on the part of corporates ahead of the Chinese New Year and the lack of the airshow this year.

Earnings from the Maldives operations may be impacted by declining European and Russian visitors on account of the falling euro and Russian rouble. The trust will endeavour to make up the shortfall by targeting other markets, although potentially at lower yields. Nevertheless, any weakness is partially offset by a weaker SGD/USD exchange rate. All in, we trimmed our FY2015 distribut…