Monday, May 29, 2006

Stock Downgraded: CapitaLad and Keppel Land downgraded by CIMB-GK!

CIMB-GK Research has cut its target prices for CapitaLand and Keppel Land after the two firms' lost out in their bids for the first casino licence at Marina Bay to Las Vegas Sands. The brokerage firm however maintained its "outperform" rating for CapitaLand and Keppel Land given their strong fundamentals. In a client note, CIMB-GK cut its target price for CapitaLand by 0.17 sgd to 5.48 sgd. It also cut its target price for Keppel Land by 0.16 sgd to 5.74. "We believe their fundamentals are not affected by this (bidding) loss. We like CapitaLand for its leadership position in the high-growth property fund management business, continued growth in its Asian markets, and its focus on improving ROEs by recycling its capital," CIMB-GK said. "We like Keppel Land for its proxy to the resurgent Singapore office market, exposure to other Asian housing markets and its growing fund management business." At 11.00 am, CapitaLand was down 0.34 sgd or 7.7 pct at 4.08 on volume of 24.716 mln shares. Keppel Land was down 0.38 sgd or 8.2 pct at 4.24 on volume of 7.675 mln shares.

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