Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Company Name: CAPITALAND LIMITED
| Research House: BofA Merrill Lynch | Price Call: HOLD | Target Price: 3.40 |
Bank of America Merrill Lynch has downgraded its rating on Southeast Asia's largest property developer, CapitaLand (CATL.SI), to neutral from buy and cut its target price to $2.75 from $3.40.
Bank of America Merrill Lynch has cut its 2011-2013 earnings estimates for CapitaLand by an average of 22% as it expects overall sales volume and prices of residential units in China to fall by about 10% next year due to an oversupply.
Bank of America Merrill Lynch has cut its 2011-2013 earnings estimates for CapitaLand by an average of 22% as it expects overall sales volume and prices of residential units in China to fall by about 10% next year due to an oversupply.
“Our downgrade is based on more bearish view on China residential (sector), the lack of share price reaction to capital deployment and earnings uncertainty,” the brokerage said.
It also noted that as CapitaLand increased its exposure to China assets, the firm has seen a deterioration of its core return on equity.
At 9:41 a.m., shares of CapitaLand were 0.8% lower at $2.59 and have fallen about 30% since the start of the year.
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