SINGAPORE (Dec 15):  DBS Group Research says Frasers Hospitality Trust is in a stronger position to pursue acquisition opportunities following its recent pre-emptive rights issue.

“We believe the increased free float post the recent rights issue should help allay investor concerns about its trading liquidity, thereby compressing FHT’s yield overtime,” says DBS lead analyst Mervin Song in a Wednesday report.

DBS is keeping Frasers Hospitality Trust at “buy” but lowering its target price to 75 cents, from 88 cents previously. The lower target price is on the back of an increase in the number of shares post the rights issue.

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