Company Name: CITY DEVELOPMENTS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 11.53 |
OCBC Investment Research has upgraded Singapore residential sector to overweight as it expects mass market prices to stay buoyant and sees value in shares of high-end developers.
OCBC forecasts mass market price to grow by up to 5% this year, as there is ample liquidity still, with interest rates expected to stay low until 2013.
The brokerage said it favours City Developments for its mass market exposure and upgraded it to ’buy’ from ’sell’ and raised its target price toS$11.53 from $8.92.
CityDev shares were 0.1% up at $10.57, and have risen about 19% since the start of the year, versus the Straits Times Index’s 6% gain.
High-end home prices are expected to fall 10-20% this year, but OCBC said it sees value in shares of high-end property developers. SC Global, Wing Tai and Ho Bee together are valued at 0.54 times their book value, below average levels seen in 2008’s global financial crisis.
No comments:
Post a Comment