Bank of America Securities Raises LINK REIT Target Price to HK$44, Citing Emerging Catalysts

Stock News
Mar 17

Bank of America Securities issued a research report maintaining its non-consensus positive stance on LINK REIT (00823) following the company's quarterly operational data update. The "Buy" rating was affirmed based on the following factors: 1) Management confirmed it is reviewing options for certain non-core assets—now including all non-retail properties and car parks—and plans to return a portion of capital to shareholders; 2) Hong Kong shopping malls continue to face challenges, but performance is largely in line with expectations, with the food and beverage and supermarket segments showing initial signs of stabilization. Cost savings are now projected to exceed the original target of HK$200 million set for fiscal year 2027. By extending the valuation basis to fiscal year 2027, the bank raised its target price for LINK REIT by 2%, from HK$43 to HK$44. Although there has been no update on the search for a new CEO, the report suggests that—given the time that has passed—the process is likely nearing completion, which should help address concerns regarding accountability.

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