Friday, April 27, 2012
OUE: Stanchart upgrades In-line to Outperform raise TP$3.22 from $2.54. Besides a more moderate decline in office capital values, hotel 2012E RevPar and capital value forecasts are raised by 49% and 34%. Short-term catalysts are seen in the horizon as well. Leasing progress at ORP 2 could beat market expectations. Residential bid could also see healthy development profits. Potential asset divestments cld unlock value. Cites that OUE’s recent interest in land auctions could surprise as mkt has forgotten OUE as a residential developer. Channel checks indicate buyers are seeking quality hotel assets and any divestment could surprise to the upside.