Citi cuts Wing Tai target to $2.05, keeps buy

Stock Name: Wing Tai
Company Name: WING TAI HLDGS LTD
Research House: Citigroup

Citigroup has lowered its target price on Singapore-listed property developer Wing Tai Holdings (WTHS.SI) to $2.05 from $2.53 but maintained its buy rating.

    

Citi said it revised downwards its earnings estimates to reflect slower-than-expected sales at some of Wing Tai’s projects, particularly Belle Vue Residences, a condominium project off Singapore’s prime Orchard Road shopping district.

Wing Tai’s taxes were also higher than its forecast, Citi said, adding that it prefers Singapore real estate investment trusts to property developers given the heightened policy risks.

However, the brokerage maintained its buy rating given Wing Tai’s attractive valuations.

At midday, Wing Tai shares were down 0.6% at $1.56 on a volume of 313,000 shares. The stock has fallen around 8% so far this year.