CGS-CIMB analyst Lock Mun Yee has reiterated their bullish stance on FRZCF stock, giving a Buy rating today.
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Lock Mun Yee’s rating is based on a combination of factors that highlight Frasers Centrepoint’s strong performance and potential for future growth. The company reported a significant year-on-year increase in gross revenue and net property income, driven by positive rental reversions and strategic acquisitions, such as the Northpoint City South Wing. These factors contributed to a healthy distribution per unit (DPU) growth, aligning with the firm’s financial expectations.
Additionally, Frasers Centrepoint has maintained a robust portfolio with a high occupancy rate, despite minor setbacks such as the exit of Cathay Cineplexes. The company is exploring various options to repurpose the vacated spaces, which could further enhance its retail offerings. Furthermore, the average cost of debt has decreased, improving the interest coverage ratio and providing financial stability. These elements, coupled with the company’s exposure to the resilient suburban retail segment in Singapore, underpin the Buy rating, with potential catalysts including stronger rental reversions and accretive acquisitions.
According to TipRanks, Mun Yee is a 4-star analyst with an average return of 6.1% and a 54.76% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Suntec Real Estate Investment, UOL Group, and Keppel REIT.
In another report released today, DBS also maintained a Buy rating on the stock with a S$2.75 price target.