CMA

CMA: Morgan Stanley maintains O/w and lifts TP to $2.50 from $2.40, calling stock the top pick of its sector and prepares investors to be positively surprised. Mgt’s net profit guidance and consensus expectations are too low, as consensus has cut 2013 net profit estimates by 8% since 4Q12 result. House raise 2013 forecast by $48m to $294m (including $27m from Bedok Residences); 22% and 28% ahead of consensus for 2013 and 2014 core net profit, respectively. Note that its too early to blow the whistle on soft China operating metrics, as same mall tenant sales growth was strong at 16%, and management says 2Q13 growth is tracking in the mid- to low teens in 2Q13. Valuation is attractive at 0.9x 2013 P/B.