Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
UOB KayHian in a July 8 research report says: "CDL is the largest listed proxy to the Singapore residential segment, deriving about 45% of its value from this segment.
"The residential segment's performance is likely to be capped as policy measures intensify with the government further reviewing its housing policies that were a hot issue in the recently-concluded elections. We expect a 20-30% slowdown in monthly volumes and a 5-15% fall in prices in the next one year as the government measures take a toll, capping CDL's share price performance.
"CDL's share price has corrected by 25% from the peak in Oct 10 and is currently trading at a P/B of 1.5x, closer to its 10-year long-term average. Target price of $9.80, pegged at 20% discount to FY2011 RNAV of $12.40 per share. MAINTAIN SELL."
Company Name: CITY DEVELOPMENTS LIMITED
| Research House: UOB KayHian | Price Call: SELL | Target Price: 9.80 |
UOB KayHian in a July 8 research report says: "CDL is the largest listed proxy to the Singapore residential segment, deriving about 45% of its value from this segment.
"The residential segment's performance is likely to be capped as policy measures intensify with the government further reviewing its housing policies that were a hot issue in the recently-concluded elections. We expect a 20-30% slowdown in monthly volumes and a 5-15% fall in prices in the next one year as the government measures take a toll, capping CDL's share price performance.
"CDL's share price has corrected by 25% from the peak in Oct 10 and is currently trading at a P/B of 1.5x, closer to its 10-year long-term average. Target price of $9.80, pegged at 20% discount to FY2011 RNAV of $12.40 per share. MAINTAIN SELL."
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