Jardines

Jardines: CLSA lifts target prices for Jardine Matheson to US$54 from US$52, Jardine Strategic to US$31 from US$30. Keeps both at Outperform as steep NAV discounts and low valuation multiples renders the risk-reward positive for these holding companies. Links earnings prospects to sustainability of growth in SE Asia…

Notes stronger Asian currencies bodes well, given financial reporting in USD. Adds hotel unit Mandarin Oriental still benefiting from recovery off low base due to fallout from global financial crisis, while growth at retail arm Dairy Farm typically surprises on the upside during inflationary periods. JMH -2.4% at US$44.90, JSH -1.3% at US$26.52.