City Developments Likely Able to Address Investor Concerns on Strategic Review
Dow Jones
Sep 29
0126 GMT - City Developments is likely able to address the concerns around its strategic review as it adopts some of its key initiatives, says Citi analyst Brandon Lee in a note. Shares fell Monday after the release of the review details, which Lee attributed to factors such as the lack of a return on equity target and 30% capital allocation to China and Japan. However, he expects CDL's return on equity to exceed Citi's current forecast if the company achieves its goal of 1.0 billion Singapore dollars in divestment gains. Geographical impact from CDL's China and Japan plans is negligible as it is likely to sell certain existing projects there before undertaking new investments, he adds. Citi has a buy rating and S$11.53 target price. Shares are down 1.8% at S$7.45.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.