OCBC Investment Research has lowered its target price on Singapore property firm UOL Group (UTOS.SI) to $5.17 from $5.48 but maintained its buy rating.
OCBC said it cut its target price on UOL as it had applied a heavier 25% discount to revised net asset value to reflect the heightened macro-economic risks.
OCBC expected UOL to launch its 577-unit development at Bedok Reservoir in Singapore later this month at indicative price levels of $1,100-$1,200 per square foot.
But given that Singapore’s CapitaLand (CATL.SI), Southeast Asia’s largest property developer, would likely launch its 583-unit Bedok Residences in the same window at similar price levels, OCBC said it was cautious about UOL’s pace of sales going forward.
However, UOL has a solid track record of accretive land acquisitions and navigating the property cycle well, OCBC said, adding that the management would be actively seeking land as the company’s land bank was almost depleted.
At 11:08 a.m., UOL shares were up 2% at $4.53. The stock has fallen nearly 5% so far this year. (The Edge Singapore)
Showing posts with label OCBC. Show all posts
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OCBC Investment Research has raised its target price on DBS (DBSM.SI), Southeast Asia’s largest bank, to $17.80 from $16.00 and maintained its buy rating.
OCBC has raised its 2011 net earnings estimate for DBS to S$2.98 billion from $2.85 million, to account for a more stable net interest margin.
OCBC has raised its 2011 net earnings estimate for DBS to S$2.98 billion from $2.85 million, to account for a more stable net interest margin.
DBS posted second quarter net profit of $735 million, against a net loss of $300 million a year earlier.
The brokerage reported that DBS’s Hong Kong operation is expected to continue growing and its results are reflective of the bank’s strategy to use Hong Kong as a base for its Greater China operations.
“While the uncertainty in the global market is likely to persist, we are of the view that it should not significantly impact DBS’s earnings in Singapore and Hong Kong,” OCBC said in a statement.
At 10:10 a.m., DBS shares were up 0.9% at $15.47. The stock has risen about 8% since the start of the year. (The Edge Singapore)
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