CIMB Research raised its target price on Cache Logistics Trust, which owns logistics assets, to $1.19 from $1.13 and kept its outperform rating, saying it expects the management to execute more acquisitions.
By 9:57 a.m., units of Cache were flat at $1.11, and have gained nearly 17 per cent so far this year. Cache posted a 5% fall in its April-June distribution per unit to 1.981 cents, which was in line with CIMB’s estimates.
“Its acquisition of assets in April and July was testament to management’s ability to deliver acquisition-led growth,” said CIMB, adding that it has assigned a lower risk premium to Cache due to resilience in its portfolio yields, backed by 100-per cent occupied portfolio.
CIMB noted that Cache will continue to explore the Malaysian market to gain familiarity, and said management prefers larger assets.
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