RBS upgrades City Developments (C09.SG) to Hold from Sell, raises target price to $11.00 from $9.10, says Dow Jones.

RBS says 2Q earnings show strong residential sales churn: “We are now more optimistic on the outlook for grade B offices thanks to strong economic growth.”

Upgrade also reflects higher market valuation for Millennium & Copthorne subsidiary, higher-than-expected average selling prices for residential projects. But warns “stock is fully valued now and the prime residential sector (17% of RNAV) will continue to see slow volumes, in our view.”

Share price last +0.3% at $12.04.