downgrade

Maybank KE downgrades Venture to 'hold'; recommends lower entry point

SINGAPORE (Nov 12): Maybank Kim Eng Research is downgrading its call on Venture Corporation to “hold” from “buy” previously to reflect to more challenging times. The research house has also cut its target price on Venture to $16.91 from $18.85 previously.

Investors are also recommended to take profit and await a materially lower entry point, assuming fundamentals do not deteriorate further.

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.

HRnetGroup downgraded to 'hold' on weaker earnings outlook, lower valuation

SINGAPORE (May 14): DBS Vickers Securities is downgrading its call on HRnetGroup to “hold” from “buy” with a lower price target of 85 cents compared to $1.05 previously on expectations of a weaker Singapore jobs market, which is believed to drag on the group’s earnings growing forward.

The research house is now anticipating FY19F core earnings to decline due to lower productive headcount (PHC), weaker jobs outlook for professional placement, and a loss of demand from fintech companies in Singapore.

FEHT downgraded to 'hold' on slowdown in upscale and mid-tier hotel RevPAR

SINGAPORE (Apr 16): “According to channel checks as well as Singapore Tourism Board (STB) data, we are likely looking at a soft 1Q19 for SG hotels,” says OCBC Investment Research analyst Deborah Ong in a Monday report.

The STB data reflected poor RevPAR performance from upscale and mid-tier hotels for Jan-Feb 2019. Upscale hotels posted -3.8% and -6.5% y-o-y RevPAR growth for Jan and Feb respectively, while mid-tier hotels posted 1.0% and -4.3% y-o-y RevPAR growth.

Channel checks have also revealed that March was also a subdued month for the industry.

ESR-REIT downgraded to 'hold' on potential rental default from Hyflux Membrane

SINGAPORE (Apr 10): ESR-REIT has been downgraded to “hold” from “buy” previously by OCBC Investment Research with a decreased fair value of 55 cents from 57.5 cents, on the back of lower returns and concerns regarding Hyflux Membrane.

The research house initiated its coverage on ESR-REIT on Dec 14, 2018 and the stock has since posted total returns of 9.76%, compared to the Straits Times Index’s 7.41%. It still continues to trade at a discount to industrial REITs that also have large portfolios, but this has narrowed significantly since the research house’s initiation.

Maybank KE cuts Hi-P to 'sell' after share price run-up

SINGAPORE (April 9): Maybank Kim Eng is downgrading its call on Hi-P International to “sell” from “hold” previously with an unchanged price target of $1.22, which is based on 1.5 times FY19E price-to-book value.

This is because the research house now deems Hi-P as overvalued at 14 times FY19E P/E versus its global peers’ 10.5 times, and its own 1 SD above the three-year mean of 12.3 times.

Memtech downgraded to 'hold' with lower TP of $1.08

SINGAPORE (Feb 28): CGS-CIMB is downgrading its recommendation on Memtech International to “hold” from “add” with a slightly lowered target price of $1.08 from $1.10 previously.

The group yesterday announced that its FY18 earnings have declined by 32% y-o-y to US$9.6 million ($12.9 million), despite a 13.2% increase in revenue to US$19.2 million.

See: Memtech reports 32% decline in FY18 earnings to US$9.6 mil

OCBC downgrades Hutchison Port Holdings Trust to 'sell' after HK$12.3 bil impairment blow

SINGAPORE (Feb 13): OCBC Investment Research is downgrading its call on Hutchison Port Holdings Trust (HPHT) to “sell” from “hold” while lowering its fair value to 22 US cents as at the close of Feb 12.

OCBC downgrades SATS back to 'hold' due to limited near-term upside

SINGAPORE (Jan 11): OCBC Investment Research is downgrading SATS back to “hold” while raising its fair value to $5.34 from $5.23 previously, after updating its cost of equity (COE) assumptions to factor in its latest share price rally.

This is because the research house sees diminishing upside in the near-term post SATS’s recent price appreciation, considering how trade tensions and weaker sentiment have impacted emerging market (EM) currencies and trade volumes.

Japan Foods cut to 'neutral' for breather after 8% share price rise ytd

SINGAPORE (Nov 12): RHB Research is downgrading its call on Japan Foods to “neutral” from “buy” with a lower target price of 48 cents compared to 58 cents previously, as it believes the group’s share price could “take a breather” after delivering 8.3% YTD returns and outperforming the STI Index by 17.4%.

The research house nonetheless continues to like Japan Foods for its strong balance sheet, thriving Japanese restaurant franchise as well as the ability to successfully launch new brands.

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