HSBC ups City Developments to neutral vs underweight

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

HSBC upgrades City Developments (C09.SG) to Neutral from Underweight, and cuts its target price to $11.64 from $12.60. It says the correction in the share price (down 11.5% year to date) is overdone despite the continued policy overhang.

It adds, the developer’s 4Q results were better than expected but in line with its forecasts. “Business segments continue to perform strongly, but some moderation in residential volumes is likely.” 

The stock is up 2.8% at $11.22 with 3.2 million shares traded.