|Following the release of FY19 results of Eagle Hospitality Trust, two analysts have provided quite varying price targets (70 c versus 51 c). But when it comes to DPU, their forecast yields are not so far apart, at 10.3% and 9.4%, respectively, based on 52-cent stock price.|
|Jefferies analyst Krishna Guha:
Cut ests, lower PT, Maintain Buy -- We lower our FY20 and 21 gross revenue, NPI and DPU estimates by 11-13%.
Further, management guidance that lodging activity is slowing down due to reduced corporate spend in an election year, ongoing trade issues and potential fallout from spread of coronavirus.
The stock trades at 40% discount to NAV and offer c.11% yield.
The Queen Mary accounts for 13% of the portfolio value. Excluding the asset, the counter trades at 30% discount to NAV which we think sufficiently discounts for a GFC-kind of situation wherein RevPAR declined by more than 20%.
KGI Securities analyst Amirah Yusoff:
4Q19 DPU missed EHT’s own forecasts by 24.4%. Given 2019’s weak performance and a lack of near term catalysts, we revise our estimates and 12M TP down to US$0.51.