CapitaLand

CapitaLand: While divestment of its remaining stake in Australand and the successful privatisation of CapitamallsAsia in 1H14 helped CapitaLand to outperform the market YTD, Nomura believes many investors remain sceptical about the stock and management’s ROE target of 8-12% for the next three to five years. As well, there is market concern over the residential projects in Singapore and the impact on valuation in a worstcase scenario. Nomura raises its TP to $4.32 (from $3.94), pegged to a 15% discount to its NAV of $5.08, based on the higher valuation for the Raffles City projects in China.