SINGAPORE (Feb 6): DBS Vickers Securities is maintaining its “hold” call on Hutchison Port Holdings Trust (HPHT) with an unchanged target price of 39 US cents (51 cents), which is based on a discounted cash flow valuation framework with a 7.4% weighted average cost of capital and terminal growth rate of 0%.
In a Tuesday report, analyst Paul Yong says the distribution per unit (DPU) outlook for HPHT remains tepid, with throughput volume expected to remain in the low single-digit region.
This comes even as the global economy continues to improve steadily, in Yong’s opinion, although some continued pressure on average selling prices (ASPs) are expected as consolidated liners and alliances negotiate for further incentives.
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