SINGAPORE |
Wed Feb 8, 2012 10:29pm EST
SINGAPORE Feb 9 (Reuters) – CIMB Research upgraded
CapitaLand Ltd to outperform from neutral and raised
its price target for the company to S$3.34 from S$2.85.
By 0235 GMT, CapitaLand shares were up 2.1 percent at
S$2.91. The company’s shares fell more than 40 percent last
year.
STATEMENT:
CIMB said the company’s valuation discounts remained wider
than its peers with a 36 percent discount to its restated net
asset value (RNAV).
The company’s bigger capitalised peers such as City
Developments Ltd and Keppel Land Ltd are
trading at a 5 percent premium to RNAV and a 24 percent discount
to RNAV respectively, CIMB said.
“On a 12-month basis, CapitaLand has lagged the broader
market by 14 percent. We see more legs for the stock in this
rally,” the brokerage said, adding recovery in rental yields for
CapitaMalls Asia Ltd, a CapitaLand subsidiary, will
provide the company more upside.
CIMB said good newsflow from China like “signs of loosening
credit” and reportedly lower mortgage rates would benefit
CapitaLand as over 45 percent of CapitaMalls Asia’s gross asset
value comes from China.
(Reporting By Mark Tay; Editing by Anshuman Daga)
