Company Name: CAPITAMALLS ASIA LIMITED
| Research House: Citigroup | Price Call: BUY | Target Price: 2.08 |
CapitaMalls Asia is down 1.7% at $1.755, after an early jump to $1.795, its highest since April 2011. The stock is retracing a bit of Tuesday's 5.0% surge, with several analysts saying they are puzzled by the rise as there isn't company-specific news.
"Even when they do big deals, the stock price doesn't normally react significantly," one analyst says. A couple analysts note Citigroup initiated the stock at Buy with a $2.08 target Tuesday, calling it "a top-class retail-mall developer/operator." Another analyst notes Credit Suisse has upgraded its view on China, where much of CMA's portfolio is located; the house says China's "worst is probably over and investors should add some beta to their portfolio."
It cites signs of consumption growth picking up, with a retail-sales pickup during the recent holidays, and it tips China discretionary plays as better proxies to play the "economy bottom-up story" vs China staples. The April 2011 peak at S$1.90 may offer a near-term cap, while the $1.69 10-day moving average likely offers near-term support.
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