ARA US Hospitality Trust is a “buy” as recovery is within reach, with the potential to double its earnings over the next two years, says DBS Group Research analysts Geraldine Wong and Derek Tan. 

The analysts are maintaining their recommendation with a target price of 69 US cents, which represents a 28% upside. 

“With the rollout of Covid-19 vaccines in the US, we believe that the worst for the Trust is over but investors are not pricing in its ability to double its earnings over the next two years. We project a multi-year revenue per available room (RevPAR) growth trend and 4-year normalisation period, delivering FY2021F and FY2022F yields of 5.9% and 12.8% respectively,” note the analysts. 


To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook