BROKERS’ TAKE
Analysts cut Mapletree Industrial Trust targets amid ‘murky’ DPU outlook; CGSI downgrades to ‘hold’
Research houses note that Singapore remains a bright spot, with rental reversion rising to 6.9% in Q2
[SINGAPORE] Analysts from CGS International (CGSI) and DBS Group Research have lowered their target prices for Mapletree Industrial Trust ( MIT ) amid rising debt costs which might delay its distribution per unit (DPU) recovery.
CGSI cut its target price to S$1.89 from S$2.22, and downgraded the trust to “hold” from “add”. DBS also lowered its target price to S$1.70 from its initial S$1.95, and maintained its “hold” call.
The cuts in target price comes after MIT’s results on Tuesday (Oct 27), when it posted a 6.6 per cent dip in DPU for the second quarter ended Sep 30.
