Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
Research House: Credit Suisse
“We have removed the 10% target price premium given the headwinds for its residential component, and align it with its historical average of parity,” Credit Suisse says, adding that the stock has underperformed the STI by 6.5% in the last three months on a policy overhang.
Company Name: CITY DEVELOPMENTS LIMITED
Research House: Credit Suisse
Credit Suisse keeps City Developments (C09.SG) at Outperform but cuts its target to $15.60 vs $17.16 due to expected headwinds for the developer’s residential business following Singapore’s property cooling measures in January.
The house says 4Q net profit fell “slightly short of forecasts due to timing difference of profit recognition at CDL’s development projects,” although divestment gains helped offset a temporary residential slowdown.
The house says 4Q net profit fell “slightly short of forecasts due to timing difference of profit recognition at CDL’s development projects,” although divestment gains helped offset a temporary residential slowdown.
“We have removed the 10% target price premium given the headwinds for its residential component, and align it with its historical average of parity,” Credit Suisse says, adding that the stock has underperformed the STI by 6.5% in the last three months on a policy overhang.
“We remain positive on the commercial and hotel sectors that comprise 48% and 15% of (City Developments’) RNAV of $15.60, respectively. It trades at an attractive 0.7X RNAV of $15.60 vs a 1X historical average,” the house says. The shares are up 2.4% at $11.18.
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