STOCKS NEWS SINGAPORE-CIMB, OCBC raise CapitaMalls target price
CIMB Research raised its target price for CapitaMalls Asia Ltd to S$1.47 from S$1.42, citing higher valuations for its listed entities such as CapitaRetail China Trust , but the brokerage kept its 'underperform' rating.
By 0142 GMT, shares of CapitaMalls were 0.6 percent higher at S$1.62, and have surged 43.4 percent since the start of the year, compared to the Straits Times Index's 14 percent rise.
CapitaMalls reported a 40.7 percent rise in its second quarter net profit to S$232 million, driven mainly by revaluation gains of its Singapore and Malaysia shopping malls, said CIMB.
CapitaMalls management noted that its tenants in China are seeing some slowdown in sales on a year-on-year basis and growth in tier-1 cities is normalizing at a faster pace, CIMB said.
OCBC Investment Research also raised the target price for CapitaMalls to S$1.85 from S$1.79, and kept its 'buy' rating, as it expects retail conditions in China to remain healthy and noted that the company's valuations remain undemanding.
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0950 (0150 GMT)
(Reporting by Charmian Kok in Singapore; email@example.com)