CMA

CMA: Macquarie upgrades co to Outperform from Neutral and raises TP from $2.19 to $2.24, sees no fundamental reasons for the stock price underperformance, believes current weakness is a buying opportunity in a retail powerhouse in Asia. Covered in BT article as well stating co’s performance is puzzling even though fundamentals are sound, with sound branding, clear focus on sector and business in growing China…

Highlights reasons could be due to 1) overlap in exposure because of Capitaland’s 65.5% stake and 2) slower deployment of capital, having $2.0b in cash and undrawn loan facilities with a recent bond issue to raise $200.0m more. Both reports likely to stir interest in co. Co has seen steep drop since 3Q results, all time in Dec was at $1.83.