Thursday, July 5, 2012

CIMB upgrades Ho Bee to neutral, TP cut to $1.20



CIMB upgrades Ho Bee to neutral CIMB Research upgraded property developer Ho Bee Investment  to neutral from underperform, citing attractive valuations as it trades at 0.5 times its book value, below its historical average of 0.9 times.

By 9:42 a.m., Ho Bee shares were 0.8% higher at $1.245, and have surged 21.5% so far this year, compared with the FT ST Mid Cap Index's 17% gain.

However, the brokerage cut its target price for Ho Bee to $1.20 from $1.28, citing slow sales of new units at its high-end property in Sentosa Cove, Singapore.

“We expect the sale of new units to remain slow as foreigners stay out of the market post-implementation of the additional buyers' stamp duty,” said CIMB in a report.

No comments:

Post a Comment