Given the muted outlook, analysts covering this counter have trimmed their distribution per unit forecasts by between 8 and 13% for FY2026 to FY2027, as MLT moves its distribution to one that is not boosted by divestment gains.
In the wake of the recent sell-off to as low as $1.08, which, at this level, means MLT is trading at FY2026 - FY2027 yield of around 6.6%.
This implies a spread against the 10-year Singapore bonds of north of 4.1% - the highest level since 2018, apart from during the pandemic.
DBS calls this counter an "undervalued play" that is also one of Singapore's "most liquid proxy".
See also: Market impact likely to be marginal after higher SSD rates, say analysts
"We anticipate the macro tailwinds to be a near-term support for MLT in the interim and a compression of the yield spread towards historical mean levels, implying an upside north of 15%-20%," says DBS.
MLT closed at $1.12 on May 13, up 3.7%, but down 13.18% year to date.
