Stock Buy CAll: SPH price target at 4.78 by DBS Vickers

DBS Vickers Securities says it has raised its rating for Singapore Press Holdings (SPH) to "buy" from "hold" and increased its target price to 4.78 sgd from 4.42 because of its attractive valuation and the boost to the company's earnings expected from its development of the Times Industrial Building here. "The proposal to develop its Times development site should boost group earnings [in the years] to August 2007-2009, amid a rising mid- [to] high-end residential market," DBS Vickers said in a note. The brokerage has raised its estimate of net profit for the company for the year to next August by 16 pct to 440.8 mln sgd to factor-in earnings from this development, and for the year to August 2008 to 482.7 mln sgd. DBS Vickers also said it had raised its valuation for SPH's Paragon building to 1.65 bln sgd, or 1.05 sgd per share, because it expects rents for retail premises here to continue to rise. At 9.51 am, SPH was up 0.06 sgd or 1.46 pct at 4.18, on volume of 2.46 mln shares.