Singapore Stock Market News

Far East Hospitality Trust - Fairly valued

StockFanatic
Publish date: Mon, 10 Aug 2015, 01:05 PM
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FEHT's 2Q15 results were in line with expectations, with 2Q and 1H's DPU accounting for 24% and 45% of our full-year forecast, respectively. Given the dampened outlook for the hospitality sector, we lower our FY15-16 DPU forecasts by 2.7-6.0%. However, after its c.19% share price correction since April, we believe FEHT is fairly valued. We upgrade our call from reduce to Hold with a lower DDM-based target price of S$0.70.
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