Company Name: KEPPEL LAND LIMITED
| Research House: Maybank Kim Eng | Price Call: BUY | Target Price: 3.65 |
Maybank Kim Eng lowered its target price on shares of Keppel Land to $3.65 from $4.04 as it pegs the property developer’s valuations at a higher discount to its restated net asset value.
The broker, which kept its ‘buy’ rating on the stock, now expects Keppel Land to sell units at its high-end residential project Marina Bay Suites at a lower average price of $2,400 per square foot (psf), compared to its prior assumption of $2,750 psf.
Keppel Land is expected to defer the divestment of its Marina Bay Financial Centre Tower 3, until it receives committed leasing of at least 90%, up from 67% now, Maybank said.
The broker noted Keppel Land has a strong cash position of about $1.6 billion, but has not been actively bidding for land in Singapore and China.
“As uncertainties continue to plague global markets, Keppel Land is in a position of strength to navigate through the medium-term volatilities and possibly pick up attractive assets for future growth, which could be a positive catalyst,” said Maybank.
Shares in Keppel Land were up 1.1% at $2.85, and have jumped 28% since the start of the year, more than the Straits Times Index’s 3% rise.
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