SINGAPORE (May 2): RHB Research and Maybank Kim Eng are maintaining “buy” on CDL Hospitality Trusts (CDL HT) with respective price targets of $1.77 and $1.80, while OCBC Investment Research reiterates its “hold” call as it places its $1.56 fair value under review, pending further details.
This comes after the trusts' managers on Tuesday reported a 3.7% y-o-y decline in 1Q DPU to 2.09 cents due to lower revenue, which was mainly attributed to reduced revenue contributions from the trusts' Singapore, New Zealand and UK Hotels.
In a Thursday report, RHB analyst Vijay Natarajan says he continues to highlight CDL HT as his top hospitality pick as he believes it remains the best proxy to the sector’s ongoing recovery, despite cutting FY19F-21F DPU projections by 2-3% to factor in a slightly weaker-than-expected market outlook.
