Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: RBS
CapitaLand stock has fallen around 11% so far this year. At 10:35 a.m., the shares were up 0.6% at $3.31 on a volume of 4.7 million shares.
Company Name: CAPITALAND LIMITED
Research House: RBS
RBS has upgraded CapitaLand, Southeast Asia’s largest property developer, to hold from sell and raised its target price to $3.40 from $3.20.
RBS said CapitaLand shares were now fairly valued after the recent steep correction, but it sees few catalysts for the stock amid the competitive acquisition climate.
CapitaLand stock has fallen around 11% so far this year. At 10:35 a.m., the shares were up 0.6% at $3.31 on a volume of 4.7 million shares.
CapitaLand reported higher than expected quarterly net profit on Tuesday, although the number was 41% lower than a year ago due to smaller one off gains.
RBS said the firm could potentially invest $2-3 billion in the residential land bank in China and Singapore, but noted that the acquisition climate will remain challenging due to the low interest rates and gearing for developers in both countries.
The brokerage added that according to CapitaLand’s management, sales volumes in Shanghai have moderated after the cooling measures and the price growth may slow down this year.
RBS said the firm could potentially invest $2-3 billion in the residential land bank in China and Singapore, but noted that the acquisition climate will remain challenging due to the low interest rates and gearing for developers in both countries.
The brokerage added that according to CapitaLand’s management, sales volumes in Shanghai have moderated after the cooling measures and the price growth may slow down this year.
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