HKLand US$ - Hongkong Land started at Reduce by BNP Paribas with US$5.42 target

Stock Name: HKLand US$
Company Name: HONGKONG LAND HOLDINGS LIMITED
Research House: BNP Paribas

BNP Paribas starts Hongkong Land (H78.SG) at Reduce with US$5.42 ($7.24) target price, according to Dow Jones.



BNP Paribas notes current share price has exceeded its 2008 peak by 33%, but rents in Central HK still 20%-25% below their 2008 levels.



Research house says Hongkong Land still faces negative reversionary pressure on rents as existing expensive leases get renewed in 2011; “even if the rise in spot rents were to maintain its momentum, greater benefits would only be seen in 2012, when we expect 10% growth in gross-rental income.”



Shares up 0.2% at US$5.98.