Company Name: WHEELOCK PROPERTIES (S) LTD
| Research House: UOB KayHian | Price Call: HOLD | Target Price: 2.00 |
UOB Kay Hian cut its rating on Wheelock Properties (Singapore) to hold from buy and retained its target price at $2.00, citing a rally in its shares this year and a cloudy outlook for luxury homes.
Shares of Wheelock were 0.5% lower at $1.875, and have gained 24% so far this year.
At Wheelock’s current share price, UOB estimates the market has priced in expectations of a possible privatisation of the company.
Despite a pick up in overall Singapore’s home sales in the first two months of the year, sentiment in the luxury market segment remain depressed and may hurt Wheelock, whose entire residential project inventory in Singapore is in the high-end, UOB said in a note.
The broker said foreigners, who account for about 30-50% of buyers in the luxury segment, are likely to remain on the sidelines amid volatile global economic conditions and additional buyer stamp duties in Singapore.
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