SINGAPORE (Oct 3): Daiwa Capital Markets is retaining its ‘hold’ call on Ascendas Real Estate Investment Trust (A-REIT) despite raising its target price to $2.41 from $2.38 previously.
The latest target price is about 7% below the consensus’s $2.59, says analyst David Lum in a Friday report. He adds that the research house remains wary of target prices that are significantly higher than net asset value (NAV).
Following his latest conversations with the REIT’s management, Lum continues to view units of A-REIT as ‘fairly valued’ amid the current environment of yield compression. This comes even though DPU forecasts have been mostly revised upward in light of recent positive news.
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