Stock Upgraded: Singapore Land target price raise to 8.85 by DBS Vickers

DBS Vickers Securities said it has upgraded its call on Singapore Land to "buy" from "hold" and raised its 12-month target price to 8.85 sgd per share from 6.03 on the view that the office landlord will benefit from tight office space supply and rising rents. "We are seeing the highest office rental growth in a decade, and CBD (Central Business District) office occupancy is getting tighter at 2.7 pct (vacancy rates)," DBS said in a client note. "Singland is well positioned to ride on the strong fundamentals in the office sector, with positive rental reversions over the next few years," it added. The brokerage also upgraded its revised net asset value estimates for the firm to 7.69 sgd per share from 6.03 sgd previously, due to a revaluation of Singapore Land's investment property portfolio and the upward adjustment of development profits and revaluation of its hotel portfolio. At 10.57 am, Singapore Land was up 0.35 sgd or 4.38 pct at 8.35 with 331, 000 shares traded.