SINGAPORE (Oct 18): DBS Vickers Securities is maintaining its “buy” call on Keppel Infrastructure Trust (KIT) with a 58-cent price target after the trust’s latest reported DPU of 0.93 cent for 3Q came in line with expectations.

At its Tuesday closing price of 49.5 cents, the trust is trading at a yield of about 7.5% according to DBS estimates, which the research house deems to provide a good entry point for investors amid current market volatility.

In a Wednesday report, analyst Sukro Sarkar says he believes KIT is sufficiently protected from the ongoing troubles of its subsidiary Basslink as it faces demands from the State of Tasmania for indemnification to over A$100 million for losses incurred from a 2016 Basslink outage incident.

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