Outlook remains bright for UOL Group on prospects of recurring income growth, say analysts

SINGAPORE (Nov 15): OCBC Investment Research and CGS-CIMB Securities are maintaining their “buy” and “add” calls on UOL Group with a fair value and price target of $8.41 and $8.45, respectively, post the release of the group’s 3Q18 financial results.

While UOL Group had reported a significant decline in 3Q earnings in the absence of a one-off gain from the consolidation of United Industrial Corporation (UIC) group in 2017, this came in line with both research houses’ expectations.

In a Wednesday report, OCBC analyst Andy Wong highlights UOL’s robust office portfolio, which saw healthy leasing momentum and occupancy rates. He also notes that the group is seeking to grow its recurring income streams, including in Australia, given the residential headwinds in Singapore.

---

Related Stories

• DBS ups Nanofilm's FY2021 earnings estimates on indications of strong 4QFY2021
• DBS downgrades Sabana REIT to 'hold' on valuations
• Broker's Digest: Genting Singapore, Nanofilm Technologies, SGX, Kimly, Digital Core REIT

---