Home Capital Broker's Calls

Frasers Hospitality Trust’s target price slashed following rights issue

Jude Chan
Jude Chan9/23/2016 09:10 AM GMT+08  • 2 min read
Frasers Hospitality Trust’s target price slashed following rights issue
SINGAPORE (Sept 23): UOB Kay Hian is keeping Frasers Hospitality Trust on “buy” but has cut its target price to 81 cents, from $1.01 previously, to factor in a “heightened risk profile”.
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.

SINGAPORE (Sept 23): UOB Kay Hian is keeping Frasers Hospitality Trust on “buy” but has cut its target price to 81 cents, from $1.01 previously, to factor in a “heightened risk profile”.

The research house says it has adjusted its model to factor in FHT’s recently-announced 32 for 100 rights issue to raise $266.3 million to finance the acquisition of Novotel Melbourne.

“We lower our FY16F DPU estimate by 3% and that for FY17 and FY18 by 12- 13%, after factoring in the dilution from the acquisition,” says UOB lead analyst Derek Chang in a Thursday 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.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now