TSX runs higher on rate cut expectations
On Friday, Macquarie analysts downgraded Mapletree Logistics Trust (MLT:SP) (OTC:MAPGF) from ’Outperform’ to ’Underperform’, significantly reducing the price target from SGD1.65 to SGD0.90. The change in assessment is based on anticipated challenges that the company may face in the financial year 2026. These challenges include an expected rebase in distribution per unit (DPU) without the benefit of divestment gains payouts and potential headwinds such as higher interest costs and a decrease in asset recycling.
Mapletree Logistics Trust’s portfolio, which is largely insulated from the direct impact of the trade war due to its focus on domestic trade (accounting for 85% of its business), is still at risk from indirect effects. According to Macquarie, these second and third-order effects could negatively influence the trust’s performance going forward.
The analysts’ outlook suggests that the combination of looming headwinds and a lower DPU could apply downward pressure on the share price of Mapletree Logistics Trust. This revision in the stock’s rating reflects a more cautious view of the trust’s financial prospects in the coming years.
The revised price target of SGD0.90, down from SGD1.65, represents a substantial decrease and indicates a more bearish stance on the value of the trust’s shares. This adjustment in the price target is a direct result of the potential challenges highlighted by the analysts.
The downgrade from ’Outperform’ to ’Underperform’ by Macquarie signals a shift in expectations for Mapletree Logistics Trust, as the analysts anticipate that the trust may not perform as well as previously expected in the face of the identified headwinds.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.