SINGAPORE (Oct 29): DBS Vickers Securities and Maybank Kim Eng are maintaining their respective “buy” and “hold” calls on Mapletree Commercial Trust (MCT) with target prices of $1.80 and $1.60, post the latest release of MCT’s results for 2Q19.

In a report on Monday, DBS analyst Mervin Song says he sees the consensus target price of $1.66, which implies a price-to-book (P/.B) value of 1.1 times, as “too low” considering VivoCity is only valued at a cap rate of 4.75% – higher than recent transactions at 2.6-4.2% for arguably less dominant malls.

DBS’s target price of $1.80 implies a P/B of 1.2 times.

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