by winston » Mon Jun 06, 2011 9:23 am
Not vested
What we recommend
We maintain our Outperform (2) rating. Having visited the properties in Paris and London, some of which were undergoing refurbishment, we have more confidence that they are viable, competitive, and able to support modest gross-profit growth.
Overall, we believe ART is a standout for the above-average distribution-per-unit (DPU) yield and resilient DPU growth we expect from it for 2011-13.
The units are trading currently at a 7% discount to its NAV as at 31 March 2011.
We have not changed our six-month target price of S$1.44, pegged to our RNG valuation, a finite-life Gordon Growth Model.
In our view, the biggest risks to our rating and target price would be deterioration in the global economic outlook and a sharp slowdown in business activity in Asia and Europe, ART’s major markets.
Source: Daiwa
It's all about "how much you made when you were right" & "how little you lost when you were wrong"