SGX: Credit Suisse keeps at Outperform & raises target price to $11.20 from $9.40, citing stage is set for 2005-style market rally in 2011. Notes study of performance of bull markets since 1994 in Spore suggests 20-40% turnover growth in 24 months following base set during initial 12 months of rally. House now factors in 20% organic turnover growth in next 12-24 months.
Notes recent run-up in share price is in reaction to increase in turnover but stock not yet pricing in gains from new catalysts on horizon, including listing of US ADRs in Spore & OTC clearing of financial derivatives. Factoring in 20-30% market share in ADR trading results in 18-19% increase in FY12-13 EPS estimates to 50¢ & 53¢ respectively. Stocks need to clear $9.60 resistance before heading higher.
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