CIMB Research maintains Outperform on Sunway REIT, ups target price to RM1.55

KUALA LUMPUR (Aug 8): CIMB Research has maintained its Outperform rating on Sunway REIT at RM1.46  and raised its target price to RM1.55 (from RM1.48) and said Sunway REIT’s FY6/12 core earnings were broadly within expectations but surprisingly high margins enabled it to edge 3% past the research house’s forecast and 2% past consensus numbers.

In a note Wednesday, CIMB Research said Sunway REIT’s 20% retail sales growth at Sunway Pyramid mall was impressive.

“We raise EPS and DPU after increasing margin assumptions. This leads to a higher DDM-based target price.

“We reiterate our Outperform rating. The stock could enjoy a rerating in the event of higher-than-expected rental reversions for Sunway Pyramid when 63% of its NLA expires next Sept,” it said.

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