UBS transfers coverage of Charter Hall to another analyst. The target is upgraded to $11.05 from $8.60 and earnings estimates are increased by 10-20%.
This reflects an increasing conviction in the company’s ability to continue raising third-party equity as well as an improved outlook for cap rate compression.
The broker also observes Charter Hall is more exposed to floating debt where base rates have fallen. Neutral rating maintained.
Sector: Real Estate.
Target price is $11.05.Current Price is $11.16. Difference: ($0.11) – (brackets indicate current price is over target). If CHC meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).