CDL: Activity level in the high-end residential market seems to have risen. While prices are still 20-30% below peak, the stabilization in volume is a strong indication of bottoming. The successful launch in high-end residential will be seen as a key catalyst.
The sell-off of CDL due to index removal presents a good buying opportunity as the stock is currently trading at 33% discount to Deutsche’s forward RNAV estimates and 1.0x non-revalued book, at 1 s.d below the average trading level. Fundamental view on CDL remains intact.
Deutsche has reiterated its BUY rating with a TP: $9.77.
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