OCBC Investment Research raised its target price for property developer CapitaLand to $3.32 from $3.25, and kept its buy rating, citing higher valuations of its listed units.
By 9:38 a.m., shares of CapitaLand were 0.7% higher at $3.06, and have surged 38% since the start of the year, compared to the Straits Times Index’s 15% rise.
CapitaLand posted a 3.3% fall in its second quarter net profit to $385.9 million, in line with OCBC’s estimates.
The third-phase launch of CapitaLand’s Beaufort development in Beijing saw good sales with over 61% of units sold, and the company sold 812 units in China in the second quarter, up 218% from the previous three months, OCBC said.
“We think current valuations remain undemanding, and continue to favour its sound balance sheet with $5.1 billion in cash and net gearing of 0.41,” the brokerage said.
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