OUE price target cut 19% to $2.80 by UBS

Stock Name: OUE
Company Name: OUE LIMITED

Research House: UBS

Price Call: BUY

Target Price: 2.80

SINGAPORE (Jan 21): UBS has cut its price target for OUE from $3.45 to $2.80, based on 0.7 times of its 2015 revised net asset value versus 0.85 times previously, to factor in increased business execution risks and a lack of visibility on the property group's capital deployment for the longer term.

It has also cut its earnings per share estimates to five cents from 13 cents for 2014, seven cents from 16 cents for 2015, and 10 cents from 17 cents for 2016 to reflect OUE's planned $495-million sale of Crowne Plaza Changi Airport to OUE Hospitality Trust.