Broker's take: RHB upgrades Cache Logistics Trust to 'buy'

RHB Research has upgraded Cache Logistics Trust to "buy" from "neutral" on hopes that rents in the Singapore logistics sector would bottom out in the first half of this year, as warehouse-space supply declines.

"Management added that it is seeing a pick-up in leasing enquiries in line with recent positive manufacturing data, but cautioned that the market still remains competitive due to the huge influx of warehouse space last year," it said in a report on Monday.

It added that the favourable resolution of 51 Alps Avenue lease disputes has removed a key overhang on its portfolio.

The brokerage also raised the target price to S$0.96, from S$0.84 previously. Units of Cache Logistics Trust closed on Friday at S$0.88.