Hutchison Port Holdings cut to "sell", target cut to 66 US cents by Citi

Stock Name: HPH Trust USD
Company Name: HUTCHISON PORT HOLDINGS TRUST

Research House: Citigroup

Price Call: SELL

Target Price: 0.66

SINGAPORE (Feb 10): Citigroup has downgraded Hutchison Port Holdings Trust to "sell" from "buy" and cut its price target to 66 US cents from 75 US cents.

The changes reflect the port operator's decision to lower its 2015 distribution to between 33 and 36 Hong Kong cents a unit, down from its 2014 payout of 41 Hong Kong cents.

HPH Trust cited reduced demand and rising labour costs in Hong Kong as factors behind its more conservative outlook.

Tough operating conditions in Hong Kong led to a HK$19 billion impairment loss in 4Q2014.