Macquarie has upgraded Wing Tai Holdings (W05.SG) to Outperform from Neutral on valuation grounds with stock underperforming STI by 10–12% over past 3-6 months, trading at 38% discount to house’s RNAV estimate, according to Dow Jones. Keeps target price at $1.88.

Macquarie says additional government measures to cool Singapore’s residential property market unlikely given large supply of land put up for sale in 2H10. But cites developer’s limited land bank as cause for concern, with only 2 high-end projects left for sale.

“It does not want to overpay for government land parcels, where keen competition means margins are razor thin,” says research house.

Shares +0.6% at $1.58.