CITYDEV - Kim Eng upgrades CityDev to buy, maintains target price

Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
Research House: Kim Eng

Kim Eng has upgraded City Developments (CTDM.SI) to buy, noting the stock has fallen more than rivals CapitaLand (CATL.SI) and Keppel Land (KLAN.SI) since Singapore announced new property measures on Jan 13.

Kim Eng maintained its target price at $14.20.

Kim Eng expects a warm response to CityDev’s launch of its nature-inspired H2O residences in Sengkang West, a district in northwest Singapore, driven by a demand for affordable high-quality living.  

This would help to push up CityDev’s share prices, which had fallen since the latest round of property cooling measures, the broker said.  

“With the price correction, we believe that valuations appear attractive again,” Kim Eng said.

At 11:05 a.m., CityDev shares were down 2.9% at $10.88 on a volume of 2.6 million shares. It has fallen around 15% since Singapore announced new measures to cool home prices.