Wednesday, April 27, 2011

OCBC lowers target on CapitaLand to $4.05; keeps buy

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: OCBC

OCBC Investment Research has lowered its target price on Singapore’s CapitaLand (CATL.SI), Southeast Asia’s largest property developer, to $4.05 from S$4.12, but maintained its buy rating.

CapitaLand reported a three-fold increase in first quarter net profit after restating the year-ago figure, helped by higher profits from development projects and portfolio gains. 

OCBC said CapitaLand’s sales of Chinese units in the first quarter were markedly slower compared with a year earlier and the firm may miss its 4,000-unit sales target in China this year, excluding low-cost housing.
But the brokerage said accretive acquisitions could be potential near-term catalysts for the stock.
Ascott, CapitaLand’s service residence arm, has deployed $335 million into seven assets in India and Germany and is eyeing more units. CapitaMalls Asia may also make more acquisitions, OCBC said.
At 10:12 a.m., CapitaLand shares were up 0.9% at $3.43 on a volume of 2.3 million shares.

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