RHB Group Research is keeping its “buy” recommendation on Starhill Global REIT (SGREIT) with an unchanged target price of 60 cents, as the stock is the cheapest retail/office S-REIT.

At current valuations, SGREIT is trading at 0.7 times FY2021 book value, below its 10-year -1SD levels, while its peers in retail/office sector have rebounded close to book or premium to book value.

Analyst Vijay Natarajan believes that despite a challenging retail sector outlook weighing down, its portfolio negatives are mostly priced in.

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