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CIMB Research upgraded CapitaLand to outperform from neutral and raised its price target for the company to $3.34 from $2.85.
By 10:35 a.m., CapitaLand shares were up 2.1% at $2.91. The company’s shares fell more than 40% last year.
By 10:35 a.m., CapitaLand shares were up 2.1% at $2.91. The company’s shares fell more than 40% last year.
CIMB said the company’s valuation discounts remained wider than its peers with a 36% discount to its restated net asset value.
The company’s bigger capitalised peers such as City Developments and Keppel Land Ltd are trading at a 5% premium to RNAV and a 24% discount to RNAV respectively, CIMB said.
“On a 12-month basis, CapitaLand has lagged the broader market by 14%. We see more legs for the stock in this rally,” the brokerage said, adding recovery in rental yields for CapitaMalls Asia, a CapitaLand subsidiary, will provide the company more upside.
CIMB said good newsflow from China like “signs of loosening credit” and reportedly lower mortgage rates would benefit CapitaLand as over 45% of CapitaMalls Asia’s gross asset value comes from China.
