Analysts have remained divided on CapitaLand following the property developer’s worst ever full-year results for FY2020 ended Dec 31.

The company reported its largest ever net loss, no thanks to a write down of some $2.5 billion in value of its investment properties, projects, and equity investments impacted by the Covid-19 pandemic.

UOB KayHian (UOB KH) has retained its “hold” rating for the stock albeit with a higher target price of $3.10 from $2.80 previously.

The brokerage warns that the pace of the post-Covid-19 recovery is likely to remain uneven.

SEE:CapitaLand incurs FY2020 losses of $1.57 bil, to pay dividend of 9 cents

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Moreover, the company’s relatively high exposure to retail leaves it exposed to threats from non-brick-and-mortar shopping, it adds.

“In our view, the outlook appears brighter on a sequential basis across the company’s business segments but recovery may be uneven, and e-commerce remains an ever-present threat,” UOB KH analyst Adrian Loh writes in a note dated Feb 25.

RHB Group Research, however, has maintained its “buy” call for the stock with an unchanged target price of $3.75.

The brokerage believes that CapitaLand’s continuing pivot towards new economy sectors and growing fund management business provides earnings resilience and a platform for recycling capital.

In addition, the company’s valuations are attractive as the stock is trading at 27% discount to book value and 40% discount to revalued net asset value, it says.

“Look beyond a challenging FY2020,” RHB analyst Vijay Natarajan writes in a Feb 25 report.

CGS-CIMB Research, too, has kept its “add” rating for the stock with an unchanged target price of $3.42.

The brokerage notes that CapitaLand’s residential sales are a positive driver ahead.

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In China, the company has remaining sales of RMB10.5 billion as at Dec 31, 2020 to be settled from 1QFY2021 onwards.

In Vietnam, the company sold $272 million worth of properties, of which 43% is expected to be recognised in FY2021.

On our shores, the residential portion of Liang Court redevelopment is likely to be launch-ready in 2HFY2021, it adds.

“Residential continues to shine,” CGS-CIMB analyst Lock Mun Yee writes in a Feb 24 report.

Likewise, PhillipCapital has maintained “buy” on CapitaLand with a lower target price of $3.75 from $3.82. The target price, says analyst Natalie Ong, is still based on a 20% discount to revalued net asset value (RNAV).

To Ong, CapitaLand remains her top pick in the sector as “high recurring income and a pivot to New Economy assets are expected to keep earnings stable and future-proof its portfolio”.

That said, she has lowered her EPS estimates for the FY2021 by 15% to 34 cents on lower rental income, as well as pushed by residential recognition.

As at 2.49 pm, CapitaLand was down 1 cent or 0.3% at $3.17 with 4.9 million shares changed hands.