DBS analyst Dale Lai has maintained their bullish stance on KPDCF stock, giving a Buy rating on February 4.
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Dale Lai’s rating is based on several compelling factors. One significant reason is the strong positive rental reversions that have driven the forecasted distribution per unit (DPU) for FY24, surpassing previous expectations. Additionally, the acquisition of KDC SGP 7 and SGP 8 is expected to significantly enhance earnings, with a notable increase of approximately 5% projected.
Keppel DC REIT’s strategic portfolio of high-quality data centers in key markets across Asia-Pacific and Europe benefits from structural sector tailwinds, maintaining high occupancy rates. Supported by its sponsor, Keppel DC REIT has access to pipeline assets and development capabilities, which further bolster its growth prospects. The potential stabilization of interest rates could enable a resumption of accretive acquisitions, providing additional upside potential. These factors, combined with the REIT’s position as the first pure-play data center REIT in Asia, contribute to the Buy rating with a higher target price of S$2.50.
Lai covers the Real Estate sector, focusing on stocks such as ESR-REIT, Keppel DC REIT, and Keppel REIT. According to TipRanks, Lai has an average return of -2.7% and a 30.49% success rate on recommended stocks.
In another report released on February 4, Goldman Sachs also upgraded the stock to a Buy with a S$2.57 price target.