Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS
Company Name: CDL HOSPITALITY TRUSTS
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 1.82 |
DBS Group Research downgraded its rating on CDL Hospitality Trust (CDLT.SI) to hold from buy and cut its price target to $1.82 from $1.85.
By 12:15 p.m., CDL Hospitality Trust’s shares were down 2.5% at $1.73 after falling 17.2% since the start of last year.
By 12:15 p.m., CDL Hospitality Trust’s shares were down 2.5% at $1.73 after falling 17.2% since the start of last year.
DBS said though it still liked CDL for “its exposure to the buoyant Singapore tourism sector”, it saw limited upside to the target price from current levels.
CDL reported a 13% rise in October-December gross revenue to $37.8 million from a year ago. Net property income also rose 13% to $35.5 million. DBS said the results were in line with expectations.
DBS said a prudent 90% payout ratio for fiscal year 2011 was favourable for CDL as the management guided that income retained will be utilised towards capital expenditure and upgrading mainly at Novotel Clarke Quay later this year.
The brokerage said such a move “implies that the trust will gradually be more self sufficient in funding its capex going forward”åç.
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