Macquarie upgrades CapitaMalls Asia (JS8.SG) to Outperform from Neutral and raises its target price to $2.24 from $2.19; it says CMA exceeded its investment targets in 2010 and house sees “no fundamental reasons for the stock price performance” (down 21% in the past 12 months and off 17% in the past three months vs +13% and +4% for STI respectively). 

The house reckons “the current weakness is a buying opportunity in a retail powerhouse in Asia.” Notes, CMA invested or committed more than $1.65 billion in four projects in 2H10, ahead of its internal targets; mall developer and owner offers exposure to more than 90 retail malls across five countries in Asia. 

 

It expects more acquisitions in 2011, after the group said it will commit up to $2 billion in new investments. Tips core earnings growth at circa 14% per year over the next 3 years. Shares are +0.5% at $1.89.