CCT gets 'buy' from DBS, Jefferies but 'hold' from OCBC, RHB

SINGAPORE (Apr 22): DBS Group Research is maintaining CapitaLand Commercial Trust (CCT) at "buy" and raising its target price from $2 to $2.10, saying CCT remains undervalued "ahead of a multi-year upturn in office rents in Singapore" and limited supply over the next three years.

Based on data from CBRE, Core Grade A CBD office rents rose 3.2% q-o-q to $11.15 ppm in 1Q19, the sixth consecutive quarter whereby rents grew more than 3% q-o-q.

The $11.15 ppm achieved at the end of 1Q19 was also 25% higher than from first-half 2017 lows, which the brokerage says should generate higher investor interest in CCT.

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