Mapletree Logistics Trust

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Target price: $1.43

Jan 24 close: $1.36

Broker: CIMB, Jan 23

Our "hold" rating on Mapletree Logistics Trust was premised on valuations. Looking past valuations, Mapletree Logistics Trust's bottom-up story is constructive, with portfolio stabilising and growth prospects from redevelopment and asset enhancement initiatives.

We upgrade the stock to "add" and raise our dividend discount model-based target price from $1.21 previously, as we roll forward our valuations and input higher long-term growth and cost of equity. We decrease our distribution per unit forecast for 2018 through 2020, on lower revenue assumptions.