CapitaLand target raised to $3.86 by Citi; "buy" call kept

Stock Name: CapitaLand
Company Name: CAPITALAND LIMITED

Research House: Citigroup

Price Call: BUY

Target Price: 3.86

SINGAPORE (Jan 6): Citi Research has raised its price target for CapitaLand from $3.35 to $3.86 to reflect the developer's strong business model, which it believes would mitigate any volatility in earnings that might stem from a downturn in the housing markets in Singapore and China.

Among other things, the sale of Australand and privatisation of CapitaMalls Asia (CMA) have given CapitaLand "a more strategically aligned business", according to Citi analyst Adrian Chua.

The developer sold its remaining 39.1% stake in Australand and privatised CMA last year.