Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST
CIMB in a Sept 8 research report says: "Cache offers one of the most attractive yields in our coverage, with CY12 DPU yields of 8.0%. In the event of an economic downturn, a potential flight to yields could provide support for its share price, we believe.
"Further, we like its earnings stability, low gearing and acquisition pipeline from its strong sponsor, CWT. We believe sponsor CWT could monetise one of its warehouses in 2012, offering acquisition opportunities to Cache. We also expect a near-term DPU uplift as management attempts to lower its all-in financing costs.
"We maintain our earnings estimates and DDM-based target price of $1.15 (discount rate 8.6%), anticipating re-rating catalysts from lower financing costs and accretive acquisitions. MAINTAIN OUTPERFORM."
Company Name: CACHE LOGISTICS TRUST
| Research House: CIMB | Price Call: BUY | Target Price: 1.15 |
CIMB in a Sept 8 research report says: "Cache offers one of the most attractive yields in our coverage, with CY12 DPU yields of 8.0%. In the event of an economic downturn, a potential flight to yields could provide support for its share price, we believe.
"Further, we like its earnings stability, low gearing and acquisition pipeline from its strong sponsor, CWT. We believe sponsor CWT could monetise one of its warehouses in 2012, offering acquisition opportunities to Cache. We also expect a near-term DPU uplift as management attempts to lower its all-in financing costs.
"We maintain our earnings estimates and DDM-based target price of $1.15 (discount rate 8.6%), anticipating re-rating catalysts from lower financing costs and accretive acquisitions. MAINTAIN OUTPERFORM."
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