Singapore Stock Market News

City Developments - Opportunities in Adversity

StockFanatic
Publish date: Tue, 08 Dec 2015, 09:40 AM
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Lower TP after revaluing its investment assets
CDL's 2H15 share-price weakness is arguably caused by a tepid office market. We cut RNAV to SGD12.22 from SGD12.72 to capture lower investment-property valuations. This lowers our TP to SGD10.40, still at a 15% discount to RNAV. But CDL trades at a 40% discount, not warranted as it implies stub valuations during GFC. Bear in mind that any roll-back of cooling measures could revive home sales and CDL has multiple options to monetise held-at-cost assets. It is now our top sector pick.
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