Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Deutsche said in a report that the overhang from policy uncertainty in China has partly contributed to the recent under performance of the larger Singapore property developers, particularly CapitaLand and Keppel Land (KLAN.SI).
Company Name: CAPITALAND LIMITED
| Research House: Deutsche Bank | Price Call: BUY | Target Price: 4.22 |
Shares of Singapore property developer CapitaLand (CATL.SI) rose as much as 3.7% on Friday on views that the stock is undervalued amid a stabilising policy environment in China.
At 11:18 a.m., CapitaLand shares were up 3.4% at $3.05 on a volume of 15.5 million shares, around 1.1 time the average daily volume so far this year.
At 11:18 a.m., CapitaLand shares were up 3.4% at $3.05 on a volume of 15.5 million shares, around 1.1 time the average daily volume so far this year.
Deutsche said in a report that the overhang from policy uncertainty in China has partly contributed to the recent under performance of the larger Singapore property developers, particularly CapitaLand and Keppel Land (KLAN.SI).
The net asset value discount for CapitaLand has widened to 38%, the bank noted.
With signs of falling average selling prices and land prices as well as greater strains to the financial positions of local governments, the likelihood of new government measures has eased and the policy environment is likely to be more stable in the second half, Deutsche said.
The bank added that while China residential sales for CapitaLand had decelerated sharply in the first quarter, launch activity is expected to pick up in the second half. It has a buy rating and a target price of $4.22 on CapitaLand stock.
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