Home Capital Broker's Calls

The market hasn’t priced in this developer’s full value yet. Should investors jump in now?

Gwyneth Yeo
Gwyneth Yeo12/1/2016 12:20 PM GMT+08  • 2 min read
The market hasn’t priced in this developer’s full value yet. Should investors jump in now?
SINGAPORE (Dec 1): City Developments has been actively unlocking the value of its portfolio through asset monetisation, and has another $3 billion worth of assets remaining that are suitable for injection into funds. Yet, its share price is trading at a 3
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Dec 1): City Developments has been actively unlocking the value of its portfolio through asset monetisation, and has another $3 billion worth of assets remaining that are suitable for injection into funds. Yet, its share price is trading at a 33% discount to its revalued net asset value.

UBS analysts Michael Lim and Kok Wai Fai are, however, unfazed by it. “There has been positive momentum on asset monetisation though the share price reaction to these transactions has been muted,” wrote the pair in a note on Wednesday. “We believe with continued execution on capital recycling, there is scope for the discount to narrow.”

As such, UBS is maintaining its “buy” recommendation on CDL with a lower target price of $9.90 from $10.05 previously.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now