Daiwa upgrades CapitaLand (C31.SG) to Outperform from Hold, lifts target price to $4.55 from $4.11, pegged at parity to sum-of-parts valuation, says Dow Jones.

Daiwa says recent tie-up with unit CapitaMalls Asia (JS8.SG) to acquire Singapore’s Bedok Town Centre site, which can be developed into residential-cum-retail property, is ideal way for developer to deploy excess capital in projects at time of uncertainty in local residential market due to recent housing-market curbs.

“We expect CapitaLand’s participation in investment opportunities with CMA in Singapore or abroad to continue, providing some diversification from its residential-segment exposure in Singapore and China,” says research house.

Shares off 1.3% at $3.95.