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.
