CapitaLand: Having streamlined its structure and operations at the corporate level over the past three years, Deutsche Bank sees CapitaLand focusing on asset level reconstitution in 2016, in view of a challenging macro outlook coinciding with several private funds nearing their end of life.
While its ROE target might be a stretch in 2016, Deutsche Bank see strong growth in operating PATMI on the back of stacked completion of its integrated developments in China. With the stock trading at a 33% discount to the broker’s RNAV estimates, implying zero valuation for its development business and a 10% discount to its recurring business, CapitaLand offers stable and diversified exposure to Asian real estate, and is one of their top picks.
The house has a TP of $3.95 for CapitaLand
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