Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: CIMB
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: CIMB
CIMB raises Overseas Union Enterprise (LJ3.SG) target price to $3.71 from $3.37, keeps Outperform call, says Dow Jones.
Says firm “cheapest domestic landlord at 33% discount to RNAV.” Says recent sale of office properties at low initial yields in Singapore has positive implications for OUE’s asset values; lowering cap rates from 5% to 4% will boost its asset values by 20%-25%.
Says firm “cheapest domestic landlord at 33% discount to RNAV.” Says recent sale of office properties at low initial yields in Singapore has positive implications for OUE’s asset values; lowering cap rates from 5% to 4% will boost its asset values by 20%-25%.
Adds, undervaluation of recent DBS Towers buy “appears particularly stark;” more value to be extracted from property with asset currently under-utilised, development of new retail podium. Adds, “with a higher free float of 33% (21% previously) and average trading volumes likely to rise from the US$3 million ($3.9 million) currently after a recent placement of vendor shares, we believe the stock will feature more on the radar screens of larger institutional funds.”
Shares last +0.6% at $2.94.
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