CGS International analyst Lock Mun Yee has reiterated their bullish stance on Q5T stock, giving a Buy rating today.
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Lock Mun Yee has given his Buy rating due to a combination of factors, including resilient core distributions underpinned by improving hotel operations and finance cost savings that are expected to extend into FY26. Despite a dip in FY25 NPI margins from the consolidation of Four Points by Sheraton Nagoya, higher distributable income and anticipated mid-single-digit RevPAR growth for Singapore hotels support a constructive operating outlook.
In addition, FEHT’s balance sheet offers sizeable debt headroom of over S$600m before reaching a 45% gearing level, enabling potential accretive acquisitions or asset recycling with its sponsor’s hotel pipeline. The stock also offers an attractive projected FY26 dividend yield of about 5.7%, and the analyst sees further upside from possible acquisitions and stronger-than-expected visitor arrivals, even while acknowledging travel and interest-rate related risks.
In another report released today, DBS also maintained a Buy rating on the stock with a S$0.70 price target.