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FHT 'remains attractive' at current price, deemed as 'laggard no more': DBS

Felicia Tan
Felicia Tan5/6/2021 10:9 PM GMT+08  • 2 min read
FHT 'remains attractive' at current price, deemed as 'laggard no more': DBS
The analysts have reduced their target price to 65 cents from 70 cents on the back of a cut in earnings estimates.
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DBS Group Research analysts Geraldine Wong and Derek Tan are keeping their “buy” call on Frasers Hospitality Trust (FHT) as they view the REIT as “attractive” given its current price at 0.9 times net asset value (NAV), which is below replacement costs.

“The current price, which is 30% below its pre-Covid level, is at an attractive level for an overlooked stock. Its prospective FY2022 yield of 8.0% is also appealing,” they write in a May 3 report.

The REIT is also a “laggard no more” as its price is catching up with its peers, supported by a robust compound annual growth rate (CAGR) of over 70% in distributions per unit (DPUs) over the medium term.

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