Mapletree Logistics' positives priced in: CIMB

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: CIMB

Price Call: HOLD

Target Price: 1.25

CIMB downgrades Mapletree Logistics Trust to Neutral from Outperform on valuations, viewing the positives as priced in. it notes fiscal-2Q12 DPU met its estimates, coming it at 24% of its FY13 forecast.

“2Q displayed sustained stability, a hallmark of MLT’s long-tenured logistics portfolio. But we believe the current environment of elevated asset values could throw a spanner in the works for MLT’s asset hunt, a key source of growth and share price outperformance.”

It notes MLT has outperformed the STI sharply this year, viewing its valuation at 1.3X P/BV and 6.0%-6.4% forward yields have priced in its portfolio stability. “While acquisitions will likely be accretive against cheap funding costs, competition and elevated asset values should make attractive finds difficult.”

It raises its target to $1.25 from $1.07 on a lower discount rate of 7.3% from 8.6% previously. The stock is down 0.9% at $1.165, but it remains up more than 37% year-to-date.