Keppel T&T kept at 'Add' with higher target price of $1.93 by CIMB

Stock Name: Keppel T&T
Company Name: KEPPEL TELE & TRAN

Research House: CIMB

Price Call: BUY

Target Price: 1.93

SINGAPORE (Jan 21): CIMB is maintaining its "Add" call on Keppel T&T (KPTT) with a higher target price of $1.93, convinced that the stock is undervalued at its current price and that market has ascribed "almost no value to its logistics and data centre assets".

This is because KPTT is trading at 10x forward P/E, more than 1 s.d. below its historical mean. It is also trading at a 14% discount to the combined market value of its 20% stake in M1 and 30.1% stake in Keppel DC REIT.