With Interests Lower And Tax Issue In Australia Addressed, RHB Keeps 'Buy' Call On Suntec REIT
Edge
Jun 17
Suntec REIT, the subject of a mandatory general offer by its controlling shareholder late last year, has since underperformed year to date, no thanks to the combination of higher Australian tax, uncertainty arising from the sponsor’s privatisation, and macroeconomic volatility.
Nonetheless, in his June 16 note, Vijay Natarajan of RHB Bank Singapore is upbeat about this counter, not just for its yield of 6%.
"With a positive resolution likely on the tax impact, and tailwinds from falling local interest rates, we see the share price bottoming out," says Natarajan, who has kept his "buy" call and $1.35 target price.
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