Amara Holdings rated 'outperform' by CIMB

Stock Name: Amara
Company Name: AMARA HOLDINGS LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.47

CIMB in a Nov 11 research report says: "9M11 earnings form 48% of our FY2011 estimate. This is broadly in line as we expect back-loaded contributions from residential sales.

"We view this positively as higher hotel revenue more than offset the absence of rental income from Amara Shopping Centre (closed for renovation in Jun). Earnings increased slightly y-o-y due to lower depreciation charges and taxes.

"We cut our FY2011-2013 to factor in a slowdown in RevPar growth and lower our target price to 47 cents from 31 cents (still at 50% disc to RNAV). At 0.9x P/BV and 0.3x RNAV, Amara remains substantially undervalued, we believe. MAINTAIN OUTPERFORM."

Amara Holdings rated 'outperform' by CIMB

Stock Name: Amara
Company Name: AMARA HOLDINGS LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.50

CIMB in a Sept 2 research report says: "Amara is a hotel developer that will benefit from both the themes of (1) strong Singapore tourism growth and (2) the Tanjong Pagar area re-development.

"The market is valuing Amara's Singapore hotels and 100AM (under renovation, formerly Amara Shopping Centre) at historical costs. Revaluating to market values shows the stock trading only at 0.3x P/RNAV. We set our target price at a 50% discount to our CY12 RNAV estimate of S$0.99. Target price of 50 cents.

"Stronger-than-anticipated RevPar and faster-than-expected completion of its overseas hotels and 100AM are expected to provide stock catalysts. At such valuations, the stock could also be a takeover candidate, if it falls further. OUTPERFORM (initiating coverage)."

Amara jumps; CIMB initiates outperform

Stock Name: Amara
Company Name: AMARA HOLDINGS LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.50

Shares of Singapore hotel developer Amara Holdings (AMRA.SI) jumped as much as 8.2% on Friday after CIMB Research initiated coverage on the stock with an outperform rating and a target price of $0.50, traders said.

At 11:19 a.m., Amara shares were up 6.6% at $0.325 on a volume of 603,000 shares, around 4.5 times the average daily volume so far this year.

CIMB said Amara was trading at a 65% discount to its revised net asset value based on just its Singapore assets, offering investors a good margin of safety.

Two new hotels in Shanghai and Bangkok are also being developed and are expected to boost the company’s earnings when completed in 2014 based on CIMB’s estimates.

In Singapore, CIMB forecast an upside in revenue peravailable room as the growth in tourist arrivals is likely to outpace hotel room supply over the next two years.