OUE

OUE: Deutsche upgrades to Buy, lifts TP to $3.32 from $2.84. Says the removal of M&A uncertainty should help narrow OUE’s NAV discount which has hovered at a deep 36% since Oct. Likes OUE’s attractive exposure to Singapore commercial properties. With ~46% of NAV contributed by office, OUE is a concentrated play on the office recovery cycle with limited residential mkt risk. Believes OUE’s successful execution of planned initiatives should help drive healthy 3yr core EPS CAGR of 14%. Eg. at DBS Building, following the relocation of its anchor tenant, vacancy risk should be mitigated by the rental upside as in-place rents (<$5 psf) are significantly below mkt.