Friday, March 4, 2011

Daiwa ups CapitaMall Trust to outperform

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: Daiwa

Daiwa has upgraded its rating for Singapore’s CapitaMall Trust (CMLT.SI), which owns shopping malls, to outperform from underperform and raised its target price to $1.97 from $1.83.

Daiwa said CapitaMall Trust’s acquisition of Singapore shopping mall Iluma has boosted its earnings visibility.

“We believe CapitaMall Trust is a more compelling investment now given the better earnings visibility and stronger distribution per unit growth,” said Daiwa in a report.
Asset enhancements of two of CapitaMall Trust’s properties are also expected to contribute to its earnings from 2012 onwards.
Daiwa has raised its distribution per unit forecasts by 3.8% in 2012 and by 3.7% in 2013.
At 9:19 a.m, CapitaMall Trust were traded 1.7% higher at $1.83, but have fallen 6.2% since the start of the year.

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