The research house raised its target price to RM2.04 from RM1.98 as it increased the terminal growth rate to 2% from 1.8% in its dividend discount model.
"Outlook for Axis REIT remains stable as its portfolio of industrial assets are relatively shielded from Covid-19 pandemic," it said in a note, while reiterating its "buy" call.
On a recent development, MIDF expects limited earnings impact from Axis REIT's acquisition of an industrial property in Pasir Gudang, Johor, from Xin Hwa Trading & Transport Sdn Bhd for RM75mil.
It maintained its earnings forecast for FY21/22 with earnings impact anticipated to come under 1%.
With the proposed acquisition funded by existing bank borrowing, MIDF said the gearing of Axis REIT is expected to climb to 0.29x from 0.37x post the asset acquisition.