Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
Company Name: KEPPEL LAND LIMITED
| Research House: BNP Paribas | Price Call: BUY | Target Price: 4.60 |
BNP Paribas has initiated coverage of Singapore property developer Keppel Land (KLAN.SI) with a buy rating and a target price of $4.60, citing the firm as one of the best office plays in Singapore.
BNP Paribas said Keppel Land could benefit from firming up of Grade A office rents, although its exposure to the residential sector has led its stock price to fall around 23% year-to-date, which the bank believes is overdone.
BNP Paribas said Keppel Land could benefit from firming up of Grade A office rents, although its exposure to the residential sector has led its stock price to fall around 23% year-to-date, which the bank believes is overdone.
Singapore residential exposure remains small, accounting for 20-30% of Keppel Land’s gross asset value, with 75% of it in mid-high segments, BNP Paribas said.
Property stocks in Singapore have been largely hit due to concerns about government measures to keep housing affordable for the masses.
Keppel Land is expected to make divestments on its Grade A offices — the Ocean Financial Centre and Marina Bay Financial Centre Tower 3 — by 2012, BNP Paribas said.
At 10:04 a.m., Keppel Land shares were down 1.3% at $3.75 on a volume of 567,000 shares.
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