not vested
STOCKS NEWS SINGAPORE-Maybank upgrades Far East Orchard to 'buy'
Maybank Kim Eng upgraded property firm Far East Orchard Ltd to 'buy' from 'hold' and raised its target price to S$2.82 from S$2.37, on expectations it will bid for more land or acquire more yield-accretive properties.
Shares of Far East Orchard were up 3.1 percent at S$2.36, and have jumped 84 percent so far this year, compared with the FT ST Consumer Services Index's <.FTFSTAS5000> 3.8 percent rise.
Far East Orchard, formerly known as Orchard Parade Holdings, was restructured two months ago, which saw it acquire a 33 percent stake in the trustee and real estate investment trust managers of Far East Hospitality Trust , thus improving its recurring income stream, Maybank said.
Far East Orchard, which owns medical suites in Singapore, will benefit from the growth in medical tourism there, helped by demand from an ageing population and rising affluence.
The company could also acquire Scotts Medical Centre next year after refurbishment works are completed, further expanding its healthcare exposure.
Source: Reuters