- Upgrade Frasers Hospitality Trust (SGX:ACV) to BUY from HOLD due to improved sector outlook and strong results. Lowering DDM-based target price to S$0.54 (COE: 7%, LTG: 3%) due to inflation and rising interest rates.
- - Read this at SGinvestors.io -
- Frasers Hospitality Trust’s current P/B of 0.67x is around -1 standard deviation level. The revised target price of S$0.54 implies a target P/B of 0.8x (historical mean since 2019).
Strong recovery underpins FY22 results
- - Read this at SGinvestors.io -
- Singapore market saw ~50%/63% jump y-o-y in full-year gross operating revenue (GOR) and gross operating profit (GOP), respectively, led by strong recovery in hotel performance.
- Robust rebound in GOR was also seen in Malaysia (>100% y-o-y), the UK (>100% y-o-y) and Germany (~82% y-o-y), underpinned by strong performance in 2H22.
Japan market ready to catch up
- Read more at SGinvestors.io.
