Friday, January 15, 2016

City Dev

City Dev (CDL) CS have added CDL to its CS AxJ Focus List. House believes multiple catalysts lie ahead for CDL, with further upside likely to be driven by potential:
1) further asset divestments to unlock portfolio value,
2) upside surprise on dividends in its FY15 results,
3) reinclusion into the FTSE EPRA/NAREIT index in mid-2016, and
4) tweaking of Singapore residential policy measures in 2H16.

Given its status as a proxy to the residential market, CDL is best positioned for a turnaround in the Singapore residential market sentiment in 2016, yet with current concerns overdone; assuming a 20% decline in both residential prices and commercial asset values, RNAV of $10.58 will still imply significant upside.

CS maintains Outperform with TP of $12.00.

No comments:

Post a Comment