OCBC keeps CapitaLand at Buy, targets $4.29

OCBC maintains its Buy rating and $4.29 fair value estimate on CapitaLand (C31.SG), noting the company has secured a contract to manage a serviced residence in Manila.

The house expects the continued growth of CapitaLand's serviced residence business to extend its competitive edge in terms of scale and branding.

"With about $0.9 billion of assets under development (on an effective stake basis), Ascott enjoys a good pipeline for capital recycling and growing the Ascott REIT ahead," it says; "we continue to favor CapitaLand for its diversified real-estate portfolio across asset classes, its strong balance sheet and renewed management focus on improving shareholder ROE," it adds.

Shares are down 2.4% at $3.26.