Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
Kim Eng Research in an Oct 10 research report says: "CDL recently announced that it will take a 30% effective stake in a development acquired by Millennium & Copthorne (M&C) in Ginza, Tokyo. M&C owns the remaining 70% stake.
"The acquisition allows M&C to gain a strategic foothold in Ginza at what we believe is a reasonable price. Going into 2012, the potential slowdown in M&C's European (ex-London) operations is unlikely to have a significant impact on its bottomline.
"Given the strong likelihood of a recession next year, we see few positive catalysts to upgrade our call. Target price of $11.05, peggedat 15% discount to RNAV. MAINTAIN HOLD."
Company Name: CITY DEVELOPMENTS LIMITED
| Research House: Kim Eng | Price Call: HOLD | Target Price: 11.05 |
Kim Eng Research in an Oct 10 research report says: "CDL recently announced that it will take a 30% effective stake in a development acquired by Millennium & Copthorne (M&C) in Ginza, Tokyo. M&C owns the remaining 70% stake.
"The acquisition allows M&C to gain a strategic foothold in Ginza at what we believe is a reasonable price. Going into 2012, the potential slowdown in M&C's European (ex-London) operations is unlikely to have a significant impact on its bottomline.
"Given the strong likelihood of a recession next year, we see few positive catalysts to upgrade our call. Target price of $11.05, peggedat 15% discount to RNAV. MAINTAIN HOLD."
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