Brokers' take

OUE Hospitality Trust | Buy Target price: S$0.75 May 9 close: S$0.67 DBS Group Research, May 9

THE trust's Q1 2016 distribution per unit (DPU) of 1.1 Singapore cents (-26 per cent) year-on-year was below expectations, drag from recent rights issue and weaker contribution from Mandarin Gallery. The hotel portfolio is resilient with Q1 2016 Revenue per available room (RevPAR) up one per cent year on year. We reiterate our "Buy" call with a revised target price of S$0.75 (Previously S$0.85). With expectations of an improvement in earnings in second half of 2016 due to the acquisition of Crown Plaza Changi Airport Extension and opening of Michael Kors and Victoria Secret stores, we believe now is the opportune time for investors to gain exposure to a portfolio of well located hotels/malls.

Oxley Holdings | Buy Target price: S$0.91 May 9 close: S$0.42 RHB Research, May 9