[ET Net News Agency, 6 March 2020] UBS Global Research lowered its target price for
Wharf REIC (WREIC)(01997) to HK$37 from HK$39.6 but upgraded its rating from "sell" to
"neutral" as the share price hit the target.
The research house said WREIC's share price is down 23% year-to-date, mainly driven by
(1) the outbreak of the coronavirus, (2) ongoing social unrest, and (3) free float rising
from 33.5% to 55.4% after the proposed privatisation of Wheelock Properties.
Trading at a 5.2% 2020 dividend yield, UBS believes the market may have priced in the
potential downside earnings risk. To facilitate the Wheelock privatisation deal, it
believes management may have an incentive to support WREIC's share price in the near term.
But UBS reiterated its bearish fundamental outlook, due to the ongoing coronavirus and
social unrest in Hong Kong. (KL)