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Brokers' take

Published Mon, Jun 24, 2019 · 09:50 PM

CapitaLand Commercial Trust (CCT) | Sell (downgraded) June 24 close: S$2.14 Fair value: S$1.88 OCBC Investment Research, June 24

The share price of CCT has ballooned 22.3 per cent in the year up to June 21 (total returns: +25.2 per cent), supported by a flight to defensive safe names and a dovish bias from the US Federal Reserve.

This has resulted in CCT's estimated FY2019 distribution yield compressing to 4.3 per cent, based on our forecast, or 4.2 per cent according to Bloomberg blended forward 12-month consensus.