PhillipCapital analyst Natalie Ong has maintained her “buy” call on CapitaLand with an unchanged target price of $4.38 on CapitaLand after the group announced that it would hold an extraordinary annual meeting (EGM) on the restructuring on Aug 10.
The sum-of-the-parts (SOTP) target price is based on the 80% probability-weighted revised net asset value (RNAV) that the demerger will be approved.
Ong has also kept her earnings estimates unchanged, pending the completion of the demerger.
See also: CapitaLand rallies after CEO says not growing AUM for AUM’s sake
CapitaLand, on March 22, proposed a strategic restructuring and the listing of CapitaLand Investment, where CapitaLand’s investment management platforms, as well as its lodging business, will be consolidated into CapitaLand Investment (CLI).
CLI will then be listed on the Singapore Exchange (SGX). CapitaLand’s real estate development will be placed under private ownership to be fully held by CLA Real Estate Holdings, CapitaLand’s existing controlling shareholder.
Should the proposed restructuring be approved, the estimated date for the delisting of CapitaLand and the listing of CLI will be on Sept 17.
Ong has identified that catalysts to CapitaLand’s share price could come from faster asset recycling and a recovery in the hospitality industry.
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As at 4.49pm, shares in CapitaLand are trading flat at $4.02.
Photo: CapitaLand
