CIMB upgrades Bukit Sembawang Estates (B61.SG) to Outperform from Underperform, and raises its target to $5.86 from $4.80.

CIMB says “higher landed property prices, improved sales at Paterson Suites and an official launch of The Vermont prompt us to raise our ASP assumptions.” The new target is still pegged at a 30% discount to RNAV (higher estimate of $8.38 from $6.85 previously).

“While possible government intervention still poses a risk for its mass-market land bank, we believe that landed properties are more sheltered due to their scarcity and lower exposure to property speculation. We also see positives from BS’s vast cheap land bank, improved gearing with sales from Paterson Suites, and a deep 43% discount to RNAV,” says CIMB.

Shares are up 2.1% at $4.87.