Analyst Adrian Loh of UOB Kay Hian maintained a Buy rating on CapitaLand Investment Limited (9CI – Research Report), with a price target of S$3.95.
Adrian Loh has given his Buy rating due to a combination of factors that highlight CapitaLand Investment Limited’s (CLI) strong potential for future growth. Despite reporting weaker-than-expected core PATMI for 2024, largely due to the absence of contributions from divested assets, CLI’s outlook remains promising. This optimism is driven by the company’s robust growth in funds under management (FUM) and significant capacity to invest in its growth segments, such as logistics, private credit, data centers, and lodging.
Furthermore, CLI’s strategic divestment activities in 2024 have enhanced its capital efficiency and liquidity, allowing for reinvestment in high-conviction sectors. The company’s balance sheet has been strengthened, with a notable reduction in net debt/equity, providing ample debt headroom for future growth. Additionally, the management’s commitment to a higher dividend payout ratio of 50% reflects confidence in its cash generation capabilities, further supporting the Buy rating.
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