Company Name: HONGKONG LAND HOLDINGS LIMITED
| Research House: JP Morgan Chase | Price Call: SELL | Target Price: 4.60 |
JPMorgan has downgraded Singapore-listed property developer Hongkong Land (HKLD.SI) to underweight from overweight and cut its target price to US$4.60 ($5.7) from US$8.32.
JPMorgan has revised its ratings for Hongkong Land as it expects demand for office space in Hong Kong’s central areas to slow and rents to fall in 2012.
“Previously, we were positive on the office rental outlook in the tight supply situation, but as a few financial institutions are planning to cut staff globally and IPO activities are slowing down, we expect office rents to decline in 2012,” said JPMorgan in a report.
The brokerage has also cut its 2012 earnings estimates by 7% and by 9% for 2013.
Hongkong Land’s shares have fallen 25.7% since the start of the year to close at $5.36 on Monday.
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