CITYDEV - City Developments target raised by Nomura; Keeps Neutral

Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
Research House: Nomura

Nomura raises City Developments (C09.SG) target price to $13.00 vs $12.26, keeps Neutral call; says CityDev’s 54%-owned M&C (MLC.LN) accounts for 13.9% of group’s intrinsic asset value, still trading below historical average, says Dow Jones.

Nomura says an asset swap deal, similar to Keppel Land (K17.SG)/K-REIT’s (K71U.SG), “could technically be replicated at City Dev and its entities.” Raises CityDev NAV to $13.00/share vs $12.26/share, chiefly to reflect higher value for Republic Plaza, gain from sale of The Corporate Office, higher ASP for NV Residences, higher valuation of M&C.



“Valuing M&C at its historical peak multiple translates into an upside of just 2.9% from the current share price. Hence, most of the optimism is probably already in the price,” house says. Shares down 0.7% at $13.60.