CGS-CIMB analyst Lock Mun Yee has reiterated their bullish stance on ATTRF stock, giving a Buy rating yesterday.
Lock Mun Yee has given his Buy rating due to a combination of factors that indicate a positive outlook for Ascott Residence’s stock. The company’s gross profit for the first quarter of 2025 increased by 4% year-over-year, driven by acquisitions and improved occupancy rates, which contributed to a rise in revenue per available unit (RevPAU). This growth was further supported by the performance of properties like Lyf Funan and ibis Ginza, which helped offset the impact of recent divestments.
Additionally, the management contracts with minimum guaranteed income (MCMGI) and longer-stay management contracts (MC) portfolios showed strong performance, particularly in the UK and Belgium, as well as in student accommodation assets in the US. Despite macroeconomic uncertainties, these assets are expected to remain resilient, providing stable income. The company’s strategic focus on growing income from master lease and longer-stay assets, coupled with a stable cost of borrowing, reinforces the positive outlook. However, potential risks such as unfavorable exchange rates and changes in global travel demand are noted as considerations.
Mun Yee covers the Real Estate sector, focusing on stocks such as Ascott Residence, CapitaLand Mall, and Keppel REIT. According to TipRanks, Mun Yee has an average return of -0.5% and a 40.21% success rate on recommended stocks.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$1.15 price target.