OUE

OUE: Following strong results yesterday, MS maintain Overweight with $3.34 TP. Note that 4Q In-line, and tip grp has a strong Capital Appreciation Proxy to Spore property and office sectors with 98% and 50% GAV exposure respectively, where grp will benefit from recovering office rents and capital values. Further growth opportunities may also be found in redevelopment and enhancement potential on its portfolio of quality assets…..

Similarly UBS maintains Buy with $4.24 TP, focusing on grp’s asset quality. Note that current share price belies asset quality and Overhang from placement of pledged shares has been minimized…

We note that OUE trades at compelling valuations at 1.0x trailing P/B and 27% discount to RNAV; discount to RNAV could potentially narrow going forward, spurred by improving investor perception and liquidity.