SINGAPORE (June 24): DBS Group Research continues to rate Manulife US REIT (MUST) a “buy” but with a lower target price of US$1.00 from US$1.15 previously.
Lead analyst Rachel Tan explains that the lower target price is based on her conservative forecast as she incorporated some impact of a weaker economic outlook as the US slowly recovers from the lockdown.
“Trading at about 8% yield and 1 time P/NAV, we believe yield spread will remain favourable with the Fed holding rates low for a longer period,” she adds.
