Cache Logistics kept at 'add' by CIMB with $1.32 target price

Stock Name: Cache Log Trust
Company Name: CACHE LOGISTICS TRUST

Research House: CIMB

Price Call: BUY

Target Price: 1.32

SINGAPORE (Feb 10): CIMB Research today maintained its "add" rating on Cache Logistics Trust with a $1.32 target price, subsequent to the announcement made by the latter to acquire three Australian assets at a price tag of $73.4 millioin.

"As the acquisition will be funded by debt, we estimate that Cache's leverage ratio will rise to 35.7% upon completion. Consequently, we expect DPU (Distribution per unit) to be boosted by 1.6% and 1.2% in FY15 (financial year 2015) and FY16," the research house said in its research note today.