Tuesday, February 8, 2011

CapitaComm - Citi cuts CapitaCommercial target to $1.47

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


Citigroup has cut its target price for Singapore’s CapitaCommercial Trust (CACT.SI) to $1.47 from $1.50 and kept its “hold” rating.



Citi has lowered its distribution per unit estimates for CapitaCommercial Trust by 2-3% over the next 2-3 years to account for higher interest expenses as it expects any bulk repayment of debt to be likely in 2012.

 

The brokerage also lowered its estimates as it expects lower income from one of CapitaCommercial’s property in downtown Singapore as it undergoes asset enhancement work this year.

At 11:30 a.m., shares of CapitaCommercial were flat at $1.49, and have fallen 0.7% so far this year.




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