FCL kept at 'add' with $2.02 target price by CIMB with $760 million UK hotels deal

Stock Name: Frasers Cpt
Company Name: FRASERS CENTREPOINT LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 2.02

SINGAPORE (June 18): CIMB estimates that the Frasers Centrepoint Ltd's (FCL) £364 million ($760 million) purchase of hotels in UK will add between 1-5% to the company's earnings, with possible further upside given the visible acquisition pipeline.

"We see the acquisition as strategic as it will increase FCL's leverage into the key UK tourist market, which saw a 3.7% CAGR over the past four years, via a strong and scalable platform," writes analyst Lock Mun Yee in a June 18 note. She maintains her "add" call and target price of $2.02 on the stock.