RHB downgrades IGB Reit to 'neutral'
RHB Research downgraded IGB Real Estate Investment Trust (REIT) to 'neutral' from 'buy' and kept its fair value of RM1.43 per share, saying the stock had limited upside.
"From valuations standpoint, we believe the REIT is now fully valued," the research house wrote in a note on Friday.
"Compared to its peers, IGB REIT is lagging behind from an inorganic growth angle."
Nevertheless, RHB said, it likes IGB REIT’s assets given the strategic location within the high population catchment areas, as well as the potential improvements to the transportation network within Greater Kuala Lumpur.
"The assets are also well-managed," it added.
As of 9.25am, the IGB shares were down 0.71 per cent to RM1.39 per share. The benchmark stock index was 0.03 per cent lower.-- Reuters
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