Fraser Centrepoint Trust: JP Morgan downgrades to Neutral, with TP $1.65. Note that
Stock has outperformed STI by about 10% YTD and is trading at 5.5% / 6.2%, CY11/CY12 yield and 1.2x FY11E book, and is no longer compelling.
Believe that future growth, including potential accretion from possible Bedok Point acquisition already priced in. See stock generating total return of 5% in next 12 mths. CMT (O/w: $1.94) and MCT (N; $0.88) preferred over FCT on the back of their potential earnings surprises, more attractive valuation and relative YTD underperformance. House would be a buyer of FCT below $1.45.
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