CapitaComm - CapitaCommercial target raised to $1.66 by Nomura

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
Research House: Nomura

Nomura lifts CapitaCommercial Trust (C61U.SG) target price to $1.66 from $1.42 after raising FY12-14 DPU estimates by 3%-18% to reflect view of significantly higher office rentals from 2012, keeps Outperform call, says Dow Jones.



Nomura flags CCT as best proxy to play recovery in Singapore office market given its 60% exposure to prime office space: “Forward leasing will accelerate as a supply gap in the office sector emerges.”

Research house says while tenants in general prefer newer office space like Marina Bay’s, “we think there is still scope for well-located office buildings such as those within CCT’s portfolio to attract tenants who do not require super-high specifications.”



REIT off 0.7% at $1.45.