Company Name: CAPITALAND LIMITED
Research House: OCBC
OCBC has raised its target price on CapitaLand (CATL.SI), Southeast Asia's largest property developer, to $4.10 from $4.05 and maintained its buy rating.
OCBC said some down-side risks to CapitaLand come from the Chinese government's plan to build 36 million low-income houses by 2015 and increasing determination to curb property prices.
However, the brokerage said that given CapitaLand's current share price, the worries are overwrought because Chinese residential exposure only takes up around 12% of the firm's total book assets in 2010 financial year excluding cash.
In addition, high-end residential projects in China such as the Paragon Shanghai and Beaufort Beijing are well thought-out and likely to be resilient in a weak market, OCBC said.
CapitaLand shares closed at $3.50 on April 8. The stock had fallen 5.7% so far this year.
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