Singapore Stock Market News

CDL Hospitality Trust - Speed bump

StockFanatic
Publish date: Fri, 25 Jul 2014, 05:53 PM
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CDL-HT's 1H14 DPU was largely in line, at 46% of our full-year forecast. Although 2Q was a weak quarter, management indicated that 2H should be more positive. Coupled with fewer hotels coming online in FY14 and more events in 2H, we retain our positive view of this sub-sector and our Add rating for CDL-HT. But we are lowering our FY14-16 DPU forecasts by 1.9-4.9% in view of a slow corporate spending recovery and Chinese arrivals, leading to a slightly lower DDM-based (discount rate: 8.3%) target price of S$1.88.
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