Home Capital Broker's Calls

DBS starts Digital Core REIT at 'buy' with TP of US$1.40

Felicia Tan
Felicia Tan1/14/2022 11:45 AM GMT+08  • 2 min read
DBS starts Digital Core REIT at 'buy' with TP of US$1.40
Key risks to the REIT would be a “slower-than-anticipated acquisition growth and a spike in borrowing costs”.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

DBS Group Research has initiated “buy” on Digital Core REIT with a target price of US$1.40 ($1.88).

The target price is based on a discounted cash flow (DCF) model with a weighted average cost of capital (WACC) of 5.3% (and a risk-free rate of 2.0%).

“This implies a normalised target yield of 3.6% in the next two years. We have assumed a total of US$750 million in acquisitions over the next two years,” write analysts Dale Lai and Derek Tan in a Jan 14 report.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.