Stock Name: UOL
Company Name: UOL GROUP LIMITED
“Under current market conditions, we have a preference for property companies with commercial assets given the stable nature of recurring income and the ability of asset values to hold under a slowing growth environment,” said Merrill in a report.
Company Name: UOL GROUP LIMITED
| Research House: BofA Merrill Lynch | Price Call: BUY | Target Price: 6.20 |
Bank of America Merrill Lynch has initiated coverage of Singapore property developer UOL Group (UTOS.SI) at buy with a target price of $6.20.
Although Merrill said it remains cautious on the property sector, it likes UOL for its exposure to Singapore’s commercial and hotel sectors, as well as its pre-sold residential land bank.
Although Merrill said it remains cautious on the property sector, it likes UOL for its exposure to Singapore’s commercial and hotel sectors, as well as its pre-sold residential land bank.
“Under current market conditions, we have a preference for property companies with commercial assets given the stable nature of recurring income and the ability of asset values to hold under a slowing growth environment,” said Merrill in a report.
Although UOL trades at a discount of 44% to its restated net asset value, compared to 22% for its peers, UOL is expected to benefit as investors shift their property portfolio towards one that is more defensive in nature in the second half, Merrill said.
At 2:28 p.m., UOL shares were 0.2% at $4.97, and have gained 4.6% since the start of the year.
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