Excerpts from latest analyst reports:
Jurong Districentre is part of the Cambridge Reit portfolio.
CIMB-GK: “More upside for Cambridge REIT”
Dividend Discount Model-derived target price raised to S$0.48 (from S$0.47). We maintain our estimates but use a lower discount rate of 9.4% (from 9.6%) based on a lower risk free rate of 4.8% applied across our REIT universe.
Cambridge Industrial Trust remains the cheapest industrial REIT under our coverage. Price/Book Value has risen to 0.5x, but still lags behind the REIT sector’s 0.6x average. We believe there is room for price upside.
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... but Morgan Stanley’s price target for NOL is $1.17 only!
The completion of the rights issue has raised US$1 bn cash for NOL, which in our view should provide NOL with sufficient capital to ride the sharp and protracted multi-year container shipping downturn. However, we believe that NOL stock valuation at 1.2x 2010e P/BV, higher than historical mean levels is rich as we expect NOL to post multi-year losses for 2009-10.
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Outlook for construction industry is stabilising.
OCBC maintains 99-cent fair value for Tat Hong
Tat Hong is expected to release its 1Q10 results on 14 Aug 2009. Key aspects to note include its rental rates, utilisation levels and equipment sales.
We are projecting a 10% fall in crane rental rates in FY10 as demand has weakened from a year ago. In addition, we expect equipment sales to post a steep YoY drop given its record high performance in 1Q09.
While the overall outlook for the construction industry appears to be stabilising, we reiterate that it remains premature to call for a recovery in the near term.
Hence we maintain our S$0.99 fair value estimate. We will turn buyers at S$0.90 and below
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