DBS Group Research has upgraded its rating for Hutchinson Port Holdings Trust (HPH Trust) to “buy” from “hold” with a target price of 14 US cents (19.1 cents), up from the previous target price of 12 US cents. 

Analyst Paul Yong said HPH Trust’s current yield of 11.3% is an attractive level to enter, along with an improving distribution per unit (DPU) outlook as a catalyst for share price to re-rate in the longer term. 

DBS raised their forecasted DPU for FY20 to 9 HK cents (1.5 cents), up from 8 HK cents previously, after factoring in lower finance costs and government subsidies, as well as expectations of a stronger second half performance as many countries start to relax social distancing measures. 

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