In a report released today, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Mapletree Commercial, with a price target of S$1.52.
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Lock Mun Yee has given his Buy rating due to a combination of factors that highlight the resilience and potential of Mapletree Commercial’s portfolio. Despite facing challenges in its overseas operations, the company has demonstrated strong performance in its Singapore assets, particularly with VivoCity, which has shown positive rental reversions and increased occupancy rates. This domestic strength is a key driver for the company’s overall stability and growth prospects.
Additionally, the company’s financial management has resulted in cost savings, reflected in a lower average funding cost and improved gearing ratios. These financial efficiencies, coupled with strategic asset enhancements and a diversified tenant mix, position Mapletree Commercial well for future growth. The potential for further asset divestments and improvements in overseas market conditions also contribute to the optimistic outlook, supporting the Buy rating.
According to TipRanks, Mun Yee is a 4-star analyst with an average return of 6.1% and a 54.76% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Keppel REIT, CapitaLand Ascendas REIT, and CapitaLand Mall.
In another report released today, DBS also maintained a Buy rating on the stock with a S$1.65 price target.