CIMB ups UOL target price to $5.31

Stock Name: UOL
Company Name: UOL GROUP LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 5.31

CIMB Research has raised its target price for Singapore’s property developer UOL Group to S$5.31 from S$4.90 and kept its outperform
rating.

By 9:18 a.m., shares of UOL were 1.3% lower at $4.73. The stock has risen 18.3% since the start of the year.

UOL posted on Friday a 12% fall in full-year net profit to $664 million, mainly due to higher taxes and lower fair value gains, which was in line with CIMB’s estimates.

CIMB said it expected UOL’s residential and retail development Lion City to see strong sales when it was launched in the second quarter.

Growth in retail rents would also help offset lower office rents as 40% of UOL’s retail leases would be due this year, the brokerage added.