Nomura upgrades CityDev (C09.SG) to Neutral from Reduce, lifts target price to $12.26 from $9.57, pegged at parity to fully-diluted NAV, to account for higher capital value assumptions for developer’s commercial, residential assets, according to Dow Jones.

Nomura says CityDev’s 38% asset exposure to Singapore commercial property market is defensive, although 24% exposure to prime luxury residential segment could be risk given potential headwinds arising from recent housing-market curbs.

“What mitigates CityDev’s risks is that 30% of its overall projected pro-rata development gains are already locked in with sales achieved, and the carrying cost of the land bank is relatively low,” says research house.

Shares +2.0% at $11.44.