UOBKayhian on 23 Jan 2015
FY15F DPU (cent): 9.0
FY16F DPU (cent): 9.4
4Q14 results were in line with expectations. 2015 looks promising for ART with full contributions from its recent string of acquisitions and stable RevPAU growth from existing properties. Concern over forex losses and a weaker euro zone are mitigated by its active hedging policy and long master leases. The stock offers an attractive 2015 yield of 7%. Maintain BUY. Target price: S$1.42.
Maintain BUY with a slightly higher target price S$1.42. Our valuation is based on a two stage DDM model (required rate of return: 8.1%; terminal growth rate: 2.0%). We expect a strong 2015 on the back of contributions from newly-acquired assets and stable RevPAU growth from its properties. The stock offers an attractive 2015F yield of 7%.
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