Credit Suisse lifts ARA Asset Management (D1R.SG) target to $1.74 from $1.18 after increasing FY10-FY12 EPS estimates by 10%-25% to account for higher acquisition fees and a larger asset portfolio. 

Expects its acquisition of a one-third stake in phase 1 of the Marina Bay Financial Centre by Suntec REIT (T82U.SG), which ARA manages, to boost ARA’s assets-under-management by 10% to $16.1 billion by end-2010 and boost its recurring annual fee income by $7.7 million from FY11. 

 

Says ARA will benefit from the upswing in property cycles in the 4 markets it operates in: Singapore, HK, China, Malaysia. Keeps its Outperform call. The stock is +0.7% at $1.45.