Raises offer price for M&C
■ CIT has revised its offer price for M&C to £6.20/share.
■ The deal could cost £681.9m, to be funded through internal cash and borrowings; we expect CIT’s gearing to increase to a still-low 0.31x.
■ The proposed exercise could create a more nimble and efficient platform in a competitive operating environment.
■ There is a potential 5% uplift to our RNAV if the deal is successfully completed.
■ Maintain Add call with a TP of S$13.15.
First REIT: Still relatively undervalued
ComfortDelGro Corp Ltd
From competitors to partners
SINGAPORE | TRANSPORT SERVICES | UPDATE
Entering into a JV by acquiring 51% stake in LCR from Uber
Sale consideration of S$295mn based on NAV of 12,450 vehicles
No changes to our forecast, pending more details and conclusion of the deal
Maintain Buy; unchanged target price of $2.69
Returning to the growth path
Upgrade to BUY, TP S$0.62 maintained.
After its recent announced portfolio reconstitution exercise and an infusion of new capital through perpetual securities, we believe that ESRREIT is back on the growth path. Planned acquisitions will drive earnings higher, complemented by a stable operational outlook as the industrial supply risk dissipates. Estimated DPU CAGR of 5% over FY18-19 will be the first reversal in a number of years. Upgrade to BUY on the back of rising yields of 7.1%-7.5%.
Check out our compilation of Target Prices