Company Name: KEPPEL TELE & TRAN
| Research House: CIMB | Price Call: HOLD | Target Price: 1.22 |
CIMB Research cut its rating on Singapore logistics firm Keppel Telecommunications & Transportation (Keppel T&T) (KTEL.SI) to neutral from outperform and lowered its target price to $1.22 from $1.24.
Keppel T&T shares were unchanged at $1.23, and have gained 11% since the start of the year.
CIMB lowered its earnings per share estimates for Keppel T&T by 1-5% for 2012-2014 to account for higher interest expense as it borrows more to fund developments.
The broker said that while the company's expansion into Jilin in China should help develop its core logistics business further, meaningful contributions from the country will only come in
“While its core logistics and data-centre earnings could continue to grow, full-year contributions from new warehouse capacity and data-centre expansion are largely in the price,” said CIMB.
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