Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD
CLSA Research in a June 8 research report says: Since Lippo's entrance as a controlling shareholder, OUE's properties have undergone major revamps. Besides, it has also been successful in making large-scale acquisitions, ie DBS Building and Crowne Plaza Airport Hotel.
"We believe OUE is well positioned to enjoy strong growth in the office and hospitality segments where 50% and 22% of its GAV respectively reside. Its balance sheet remains mildly geared at 0.34x (adjusted), within its comfort zone of 0.6x. It is able to mobilise S$1b via debt, if needed.
"The management expects no capital raising in the next 12 months. Target price of $4.16, implying an upside of 39%. Our target price is pegged at 15% discount to $4.89 per share RNAV estimate. BUY (initiating coverage)."
Company Name: OVERSEAS UNION ENTERPRISE LTD
| Research House: CLSA | Price Call: BUY | Target Price: 4.16 |
CLSA Research in a June 8 research report says: Since Lippo's entrance as a controlling shareholder, OUE's properties have undergone major revamps. Besides, it has also been successful in making large-scale acquisitions, ie DBS Building and Crowne Plaza Airport Hotel.
"We believe OUE is well positioned to enjoy strong growth in the office and hospitality segments where 50% and 22% of its GAV respectively reside. Its balance sheet remains mildly geared at 0.34x (adjusted), within its comfort zone of 0.6x. It is able to mobilise S$1b via debt, if needed.
"The management expects no capital raising in the next 12 months. Target price of $4.16, implying an upside of 39%. Our target price is pegged at 15% discount to $4.89 per share RNAV estimate. BUY (initiating coverage)."
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