broker's call

CCT downgraded to 'sell' by OCBC after price balloons 22% YTD

SINGAPORE (June 25): OCBC Investment Research is downgrading CapitaLand Commercial Trust (CCT) to “sell” with an unchanged fair value estimate of $1.88, after the stock saw its share price surge 22.3% so far this year.

In a Monday report, OCBC’s research team says the run-up had been supported by a flight to defensive safe names and a dovish bias from the US Federal Reserve.

But now, the Fed is expected to shift its policy stance.

Genting Singapore kept at 'add' by CGS-CIMB on new casino openings in Japan

SINGAPORE (June 24): CGS-CIMB Securities continues to rate Genting Singapore (GENS) at “add” with an unchanged target price of $1.06.

With several upcoming urban and regional integrated resort (IR) in Japan, many gaming players are eager to secure these opportunities.

"We think Japan’s IR Basic Policy would be introduced by end-FY19 at earliest," says analyst Cezzane See.

So far, Osaka has called for a request for concept (RFC) in April and Yokohama has issued its request for information (FRI) in 4Q18 and GENS has participated in both.

Frasers Centrepoint Trust kept at 'buy' by DBS on strategic transformation

SINGAPORE (June 24): DBS Group Research is reiterating its “buy” call on Frasers Centrepoint Trust (FCT) with a higher target price of $2.85, from $2.60 previously.

Currently, all of FCT’s properties are suburban malls, which have shown to be resilient across market cycles.

However, DBS is positive on FCT’s acquisition of stakes in PGIM’s AsiaRetail fund and Waterway Point as this should transform the group’s growth profile entirely.

With its DPU expected to grow at a 2.8% CAGR over FY18-21, FCT will now count among the fastest-growing REITs.

Silverlake Axis on track for solid FY19, says RHB

SINGAPORE (June 20): RHB Research is keeping Silverlake Axis as its top pick in Singapore and in the technology sector, as the digital economy solutions and services provider stays on track to finish the year on a high.

“With improving fundamentals and strong earnings growth as of 9M19, Silverlake Axis is on track to record a robust FY19,” says lead analyst Jarick Seet in a Wednesday report.

“We expect the sturdy growth in earnings and margins to continue into 4Q19, as it continues to execute the major Malaysian core banking contract,” he adds.

Supportive US macroeconomic outlook, robust demand-supply to benefit Manulife US REIT's office properties

SINGAPORE (June 19): Manulife US REIT (MUST) currently has a portfolio of eight trophy and class A office properties located in Los Angeles, New York, Washington DC and Atlanta, with a total net lettable area (NLA) of 4.16 million sf and valued at US$1.86 billion ($2.54 billion).

According to statistics, these four cities rank among the top 10 in the US in terms of GDP growth, population and median household income.

In an unrated report by CGS-CIMB, MUST has caught the attention of analyst Lock Mun Yee after she visited MUST’s properties in Atlanta and New Jersey.

AEM poised for system level testing; is likely M&A target: Maybank

SINGAPORE (June 19): Maybank KimEng is maintaining its "buy" call in AEM Holdings with an unchanged target price of $1.40.

Maybank says the roll-out of a 5G mobile network will see the design and production of increasingly complex and mission-critical chips.

To test these new chips efficiently, chipmakers will have to look to system level test (SLT) to complement conventional methods.

ComfortDelGro raised to 'neutral' by RHB as valuations look stretch after STI outperformance

SINGAPORE (June 18): RHB Research has upgraded ComfortDelGro (CD) to ‘neutral’ as the stock looks fairly priced now although it remains confident over the company’s growth recovery.

“While we like the defensive nature of its earnings, investors should consider buying at a lower price (about $2.40),” says analyst Shekhar Jaiswal in a Tuesday report, adding that the stock is trading at 17.3 times 2019 earnings versus its five-year average of 15 times.

Starhill Global REIT kept at 'buy' despite unchanged rent from Toshin master lease

SINGAPORE (June 18): OCBC Investment Research is keeping its “buy” recommendation on Starhill Global REIT (SGREIT) with a fair value estimate of 80 cents.

This follows SGREIT's June 8 announcement that the new base rent under the Toshin master lease, which is for a period of three years from June 8, 2019, remains unchanged from the existing rent.

In a Monday report, analyst Andy Wong Teck Ching says, “This is below our expectations, as we had pencilled in a 5% increase in our assumptions.”

Singtel kept at 'buy' by Phillip as regional associates see recovery

SINGAPORE (June 17): Phillip Capital continues to rate Singtel a “buy” with an unchanged target price of $3.66, while keeping the stock as its top pick in the telecommunication sector.

This comes on the back of Singtel hosting its Investors Day 2019, where the group’s management gave updates on its various business segments and showcased new abilities.

These capabilities ranged from payment solutions, Internet of Things (IOT), prepaid Electronic Know Your Customer (eKYC) and Singapore’s first 24/7 unmanned pop-up store, UNBOXED.

HRnetGroup's business diversification amid economic uncertainty keeps it at 'add'

SINGAPORE (June 14): CGS-CIMB Research is keeping HRnetGroup at “add” but with a lower target price of $1.01 compared to $1.03 previously.

This came on the back of a survey released by ManpowerGroup, which showed that the net employment outlook for 3Q19 is relative stable, and expects a 12% growth for the next quarter, a 1 percentage point (pp) increase from the last quarter, but unchanged from the same period last year.

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