Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: Credit Suisse
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: Credit Suisse
Overseas Union Enterprise (LJ3.SG) is up 1.8% at $2.89, recouping some of Tuesday’s 2.7% loss, after management denies market speculation that it is moving into low-cost housing in China.
“The Group wishes to reiterate that OUE’s business strategy remains unchanged and is focused on Singapore property and hospitality sectors. There are no plans currently for investments into China or any other country in the region,” OUE says in an exchange filing.
“The Group wishes to reiterate that OUE’s business strategy remains unchanged and is focused on Singapore property and hospitality sectors. There are no plans currently for investments into China or any other country in the region,” OUE says in an exchange filing.
Credit Suisse, which reiterates its Outperform rating with a $4.20 target, says OUE also clarified to them that speculation over a management shake-up was unfounded.
The house says market concerns are unwarranted: “Management reiterated to us that it will remain at least 90% Singapore-centric.” Credit Suisse adds “OUE remains one of our top picks for its prime commercial and hospitality exposure (58% and 19% of RNAV respectively).”
It adds, the stock is trading at “a significant 40% discount to RNAV of $4.67.” The shares have fallen 21% from their 2011 peak at $3.65.
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