[ET Net News Agency, 4 December 2020] Morgan Stanley lifted its target price for Link
REIT (00823) to HK$78 from HK$70 and upgraded its rating to "overweight" from
"equal-weight".
The research house said Link is the beneficiary of mass retail market outperformance,
due to the shift in middle-class spending. The company is one of two HK property stocks
that should see positive dividend growth in 2020. The dividend growth should accelerate to
7%+ in FY2022, with upside coming from asset acquisitions and portfolio revaluation gains.
Morgan said the stock is trading at a dividend yield of 4.3% in FY2021 and 4.6% in
FY2022. Other HK property stocks with a US$10bn+plus market cap are trading at a 4.4% FY1
(next twelve months) dividend yield but with a muted dividend growth outlook. Hence, it
considers Link's valuation attractive versys its own history and peers. (KL)