UOB Kay Hian analyst Jonathan Koh maintained a Buy rating on CapitaLand Mall (CPAMF – Research Report) today and set a price target of S$2.37.
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Jonathan Koh’s rating is based on CapitaLand Integrated Commercial Trust’s (CICT) robust performance and strategic portfolio reconstitution. The trust achieved a strong rental reversion of 8.8% for retail and 11.1% for office spaces in 2024, indicating a healthy demand and efficient management. Additionally, the occupancy rate at ION Orchard improved to 98% following a strategic acquisition, contributing to a portfolio valuation increase of 1.4% on a same-store basis.
CICT’s financial health is further solidified by an improved aggregate leverage ratio, which decreased to 38.5%. The successful execution of asset enhancement initiatives, such as at the IMM Building and Gallileo, is expected to continue supporting growth. The combination of these factors underpins Koh’s confidence in the stock, justifying the Buy rating with a target price of S$2.37.
Koh covers the Real Estate sector, focusing on stocks such as Mapletree Logistics, Frasers Logistics & Commercial Trust, and Mapletree Commercial. According to TipRanks, Koh has an average return of 0.4% and a 45.30% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a S$2.30 price target.