Friday, March 31, 2006

CapitaLand target price lifted to 5.30 sgd (CIMB-GK)

CIMB-GK Research has lifted its target price for CapitaLand Ltd to 5.30 sgd from 4.52 and kept its 'outperform' rating on the property developer, which it believes has edge over rivals in the bidding for the planned Marina Bay integrated resort. "Based on previously disclosed information, we believe CapitaLand's consortium with MGM Mirage has a slight advantage over the others and we estimate a win will add 0.35 sgd to its revised net asset value (RNAV)," CIMB-GK analyst Tricia Song said in a note. Song has raised CapitaLand's RNAV to 4.28 sgd from 3.77 to reflect its higher fund management growth profile, divestment gains, and possible returns from its China malls and investment in Link REIT. "Target price is 5.30 sgd, pegged at an unchanged 20 pct premium to RNAV plus an [integrated resort] option of 0.17 sgd," she said. At 10.18 am, CapitaLand was up 0.02 sgd at 4.82 on volume of 1.39 mln shares.

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