Friday, June 15, 2012

CapitaLand

CapitaLand: ABN Amro upgrades to Buy from Hold with a price target of $2.93, citing its China exposure may now be in its favor. With latest local policy loosening in China and rate cuts, the group’s 'China discount' may start to lighten over the coming quarters. House notes investors have been concerned about the Chinese residential market given the policy overhang, but recent positive developments have emerged, with average-selling-price declines abating amid a sales-volume recovery. While no significant easing is expected, policy loosening and rate cuts may support sector sentiment. The group’s China assets accounts for about 37% of RNAV, with only 27% in residential, with the rest from retail malls, serviced residences, integrated projects and other commercial projects. The stock is up 3.8% to $2.72.

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