Goldman Sachs cuts City Developments (C09.SG) to Neutral from Buy, raises target to $13.80 from $13.20; says asset sales a bright spot but now at tail end; following recent outperformance, upside looks limited. 

Stock now trading at 15% discount to NAV vs mid-cycle 22%, on P/B, stock at 1.7X vs historical median of 1.6X (5 years), 1.7X (20 years). 

 

Says main NAV driver, residential, faces slower 2011, but expects margins to hold up with good inbuilt margins from attractive land costs. Adds, stock remains best of residential bunch; “even as the market softens, we see good earnings visibility from unbilled sales with several sold out projects yet to be recognized.” 

 

Notes since May 12 2009, share price +67% vs STI’s +47%, over past 12 months, CDL +25% vs STI +15%. 

 

Shares off 0.2% at $13.10.