City Developments' Lower Net Gearing Target May Boost Earnings
Dow Jones
Sep 28
0719 GMT - City Developments' goal to reduce its net gearing to around 55% could boost its earnings and dividend per share, says Citi analyst Brandon Lee in a note. The Singapore property company's strategic review appears upbeat to Lee, who notes its sizeable divestment target and potentially over 1 billion Singapore dollars in profit after tax and minority interest of divestment gains. Citi retains its buy rating and S$11.53 target price, citing valuations including its stock trading at a 41% discount to its revalued net-asset value. Shares drop 8.2% to S$7.58.
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