Brokers' take

Frasers Centrepoint Trust | Buy Target price: S$2.48 Jan 24 close: S$2.31 DBS Group Research, Jan 24

We raised our rental growth assumptions at key assets over the next few years, and we lifted the target price by 4.7 per cent as a result.

We are more optimistic than the street as we are forecasting a 7 per cent increase in distribution per unit (DPU) in 2018, against the consensus of 2.5 per cent, as Northpoint returns to full operations; and annual DPU growth of around 4 per cent to 5 per cent in the next couple of years, whereas consensus believes DPU will stay flat.