City Dev: Nomura upgrades to Neutral from Reduce, lifts target price to $12.26 from $9.57, pegged at parity to fully-diluted NAV, to account for higher capital value assumptions for developer's assets. Highlights CityDev's 38% asset exposure to Spore commercial property market is defensive although 24% exposure to luxury residential segment could pose a risk given potential headwinds arising from recent housing-market curbs.
However, 30% of its projected development gains are already locked in with sales achieved & the carrying cost of the land bank is relatively low. Stock is oversold, bouncing off 200-day MA support at $11.00 & attempting to close breakdown gap at $11.44. We see topside resistance at $12.00.
No comments:
Post a Comment