Analysts from CGS-CIMB Research and RHB Group Research have downgraded their calls on CDL Hospitality Trusts (CDLHT) to “hold” and “neutral” respectively from “add” and “buy”.

Despite the downgrade, CGS-CIMB analysts Eing Kar Mei and Lock Mun Yee have increased their target price estimate to $1.24 from $1.16 previously, as they believe the trust’s recovery remains “volatile” and that its valuation has recovered back to the near five-year mean of 0.97 times price to book value (P/BV).

Eing and Lock have also raised their distribution per unit (DPU) estimate for FY2021-2022 by 6-15% mainly to factor in capital distribution.

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