Brokers' take

City Developments, Hold (maintained) Dec 11 close: S$8.24 Target price: S$9.50 DBS Group Research, Dec 11

We maintain our "hold" rating on City Developments (City Dev) and lower our target price to S$9.50 (from S$10.00 previously). Although the shares are trading at attractive valuations (at close to two standard deviations below historical price/net asset value average), we see limited catalysts for the stock and sector given expectations of a property market slowdown which historically implies that City Dev shares will likely be trading in a range.

Given the weakened sentiment in Singapore property, coupled with the group having the largest inventory of units for launch, we believe there could be limited positive catalysts. In addition, the margins of units from the land bank acquired in late 2017-2018 could be impacted given that the ability to raise property prices may be limited following a turn in sentiment.