UOB Kay Hian analysts Loke Peihao and Adrian Loh has maintained their “buy” recommendation on PropNex with a higher target price of 86 cents from 69 cents previously.

This, they say, is due to the real estate agency’s strong cash generation and digital edge which will enable the real estate agency to ride through the storm brought about by the Covid-19 pandemic.

“To better reflect the group’s strong cash reserves (43% market cap), we shift our valuation methodology to 11x 2021F ex-cash price-to-earnings (PE),” they write in a report dated Oct 27.

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