SINGAPORE (Dec 15): DBS Group is upgrading Suntec REIT to "buy" from "hold" with a revised target price of $2.30.
"We, like all sellside analysts, were blind-sided by Suntec’s past performance and missed the 30% share price rally in 2017," says analyst Mervin Song in a Friday report.
But with a multi-year upturn in the Singapore office rents on the horizon, Song argues that REITs with office exposure should trade above book value, as seen historically.
