Singapore Stock Market News

Ascott Residence Trust - Global headwinds remain

StockFanatic
Publish date: Mon, 10 Sep 2012, 01:11 PM
StockFanatic
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We returned from a non-deal roadshow more positive on the stock after gaining more clarity on growth potential via asset enhancements and acquisitions. That said, we continue to expect macro headwinds to cap same-store growth and see forex volatility as an overhang.

We revise our assumptions for long-term and AEI-led RevPau growth, and factor in S$100m in acquisitions in 2013/14, adjusting our DPU accordingly. DDM-based target price (8.5% discount rate) also rises. As the stock has done well YTD, we remain Neutral on the lack of strong catalysts.
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