Home THE DAILY EDGE Business UOL Group off 2.7%; OUE may be better bet: CIMB
UOL Group off 2.7%; OUE may be better bet: CIMB

Tags: Overseas Union Enterprise | Uol Group

Written by The Edge   
Tuesday, 10 August 2010 11:06
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UOL Group (U14.SG) off 2.7% at 5-session low of $3.99 despite strong 2Q10 results as investors opt to lighten positions after recent run-up, which enabled stock to close above $4.00 for whole of last week for first time since April, according to Dow Jones.

30-day moving average, last at $3.90, expected to offer support. Analysts generally agree 2Q10 $122.1 million earnings (+36.0% on year), excluding fair value gains, better than expected, with hotel operations likely to remain robust given rising tourist-arrivals to Singapore.

“A brighter outlook for its hospitality segment is a key positive in the near term,” says CIMB, which has Neutral call with $4.17 target, but notes peers like Overseas Union Enterprise (LJ3.SG) may be better bet given its better asset quality.

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Last Updated on Tuesday, 10 August 2010 11:08