CapitaLand may be rising, but here’s why it is still not time to ‘buy’

SINGAPORE (March 1): RHB is remaining “neutral” on CapitaLand while raising its target price to $3.60 from $3.15 previously, as it expects limited upside on the stock following the run-up in its share price, which has increased by about 20% in the year-to-date.

(See also: CapitaLand posts 74% rise in 4Q earnings to $430.5 mil on higher handover of China projects)

In a Wednesday report, analyst Vijay Natarajan reckons there are two reasons for CapitaLand’s outperformance, the first being the real estate company’s focus on asset-light strategies to enhance returns. This includes building up its private real estate funds; expanding its serviced residence and retail portfolio through management contracts; and acquiring accretive income-producing assets.

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