Stock Upgraded: Capitaland target price to 5.68 sgd by CIMB

CIMB-GK Research said it has raised its target price for CapitaLand Ltd to 5.68 sgd from 5.36 sgd, on the assumption of higher selling prices for the property developer's high-end residential developments and higher fair value for CapitaLand's listed units. The brokerage said that the target price was pegged at a 20 pct premium to the stock's revised net asset value (RNAV), which was raised to 4.74 sgd from 4.46. "(We) maintain an outperform call on the back of CapitaLand's leadership position in the property fund management business, its focus on capital recycling and its continued expansion in high-growth markets," CIMB-GK said in a client note. It noted that the consortium of CapitaLand and Kerzner will likely come out with a competitive bid for the Sentosa integrated resort and casino. "Kerzner/CapitaLand's 60:40 joint venture plans to invest 1.5-2 bln usd on the project and we estimate an attributable gain of 1.4 bln sgd, or 0.49 sgd per share for CapitaLand," it said. At 10.32 am, Capitaland was down 0.10 sgd or 1.92 pct at 5.10 on volume of 2.17 mln shares.