Brokers' take

CapitaLand Mall Trust | Buy

Nov 30 close: S$1.905

Target price: S$2.09

OCBC Investment Research, Nov 30

FOLLOWING our downgrade on CapitaLand Mall Trust (CMT) to a "hold" on Oct 22, 2015, we note that its share price has since corrected 8.5 per cent, as market jitters resurfaced over the possibility of a Fed lift-off in December this year after a strong October jobs data report. At current price levels, we believe the market has adequately priced in the risks associated with an interest rate hike as well as headwinds facing the retail sector in Singapore. CMT's risk-reward appears compelling, with the stock trading at 6.1 per cent FY16 forecast distribution yield, which is close to two standard deviations above its five-year forward average of 5.5 per cent. The yield spread of CMT against the Singapore Government 10-year bond yield currently stands at 3.6 percentage points, and this comes in at half a …