Daiwa upgrades CapitaMalls Asia (JS8.SG) to Outperform from Hold, lifts target price to $2.65 from $2.10, pegged at parity to sum-of-parts valuation, says Dow Jones.

Daiwa says property group’s recent $788.9 million joint acquisition with CapitaLand (C31.SG) of Singapore’s Bedok Town Centre site, which can be developed into residential-cum-retail property, reinforces CMA’s dominance in local retail property market.

Research house notes move considerably reduces pressure for CMA to win, possibly overbid at forthcoming tenders. Says CMA’s focus on retail property segment in Singapore shields it from government policy risk related to residential sector.

Shares off 1.3% at $2.22.