Analyst Adrian Loh from UOB Kay Hian maintained a Buy rating on PropNex Ltd. (OYY – Research Report) and increased the price target to S$1.30 from S$1.18.
Adrian Loh has given his Buy rating due to a combination of factors that suggest a promising outlook for PropNex Ltd. Despite missing earnings estimates in 2024, the company experienced strong sales in the latter half of the year and into early 2025, indicating a robust market presence. The Singapore property market is expected to remain solid in 2025, and PropNex is poised to benefit from this with an anticipated 29% growth in earnings.
Additionally, PropNex offers a defensive yield of 6.1% for 2025, which is attractive to investors, especially considering the potential for further special dividends. The company has already declared a significant dividend for 2024, and the prospect of another special dividend from strong 1H25 results adds to its appeal. With a bright outlook driven by a high volume of new property launches, Adrian Loh maintains a Buy rating and has raised the target price to S$1.30.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$1.25 price target.