Maybank Kim Eng raised its target price on Singapore property
developer Keppel Land Ltd to S$4.78 from S$4.74 and
maintained its 'buy' rating, citing "attractive" valuations.
Keppel Land shares were down 0.25 percent at S$4.05 on
Thursday. The stock is little changed since the start of the
year, lagging the gain of more than 2 percent in the Straits
Keppel Land's management expects sales volume to fall after
the latest round of property cooling measures in Singapore, but
prices are likely to hold due to the low interest rate and the
long-term prospects in the city-state, Maybank said.
Keppel Land's new Chief Executive Ang Wee Gee also suggested
that developers with strong balance sheets like Keppel Land may
even benefit if weaker companies were pressed to sell their
assets at attractive prices, Maybank said.
Earlier this month, the Singapore government imposed a
higher stamp duty on foreign buyers, a new levy on sellers of
industrial property and a limit on loan sizes.
OCBC Investment Research upgraded Keppel Land to 'buy' from
'hold' and raised its target price to S$4.53 from S$3.49, saying
the company is well positioned for the 2013 fiscal year.
Keppel Land has a strong balance sheet, significant exposure
to the Chinese property sector and the potential to realise
gains from the sale of an office building in Singapore, OCBC