Frasers Centrepoint

Frasers Centrepoint: BoAML initiates with Buy (TP $2.07) based on 25% discount to FY15E RNAV. Buy rating is premised on: 1) Attractive valuation 2) Undervalued assets within its remaining stub which are likely to be progressively recycled 3) Good execution track record. Execution on Australand and steps from the major shareholders to increase free float in the future could be a stock catalyst. FCL’s offer for Australand was more than just assets, but a platform to compete more effectively in its core market. The positives of coveted land bank, complementary strategy and stable portfolio from Australand should not be ignored.