SINGAPORE (Nov 20): Deutsche Bank is confident that CapitaLand is able to achieve its return on equity (ROE) target of 8%-12%.

It says ROE growth will be driven by the sustained sales momentum in China, portfolio rationalisation, asset recycling and a focus on growing its fund management platform.

“CapitaLand remains one of our top sector picks,” Deutsche analysts Joy Wang and Chien-Fie Man write in a note on Nov 18.

Deutsche maintains its “buy” rating for the stock with an unchanged target price of $4.20.

At 11.45 am today, CapitaLand slipped 3 cents or 0.9% to $3.12, with some 4.3 million shares traded.