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Broker's Take: 'Buy' call on CapitaLand


CIMB Research has placed a "buy" call on the shares of CapitaLand with a target price of S$4.08.

It noted that CapitaLand's results were slightly below expectation, with Q1 2015, making up 20 per cent of CIMB's full-year estimate.

But the retail mall and serviced-residence operations continued to perform well and helped offset one-off losses in Singapore as well as slower residential contributions in China.

Looking ahead, the research house said the rollout of new projects in Singapore and China as well as three new malls in China should add to rising contributions from the existing portfolio.

"Whilst we lower our FY2015-2017 estimates by c.10 per cent on slower profit recognition, we maintain Add with a slightly higher revalued net asset value-backed target price of S$4.08."

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