What would it take for prices to move higher? Since the announcement on July 15 that Philip Yeo, an independent director, was stepping down, CDL’s share price has risen by 28%. This compares with a 9% gain from the start of the year ($5.11) to July 15 ($5.57).
When The Edge Singapore met Yiong Yim Ming, group CFO, City Developments (CDL), in September, her wish was for CDL’s share price to be higher. As of Nov 18, CDL is up almost 41% this year. However, the stock is still trading at a discount to its book net asset value of $10.10, and its revalued net asset value of $17.48 (assuming the investment properties are valued at market).
CDL is ending the year on a more positive note than it started. At the beginning of the year, according to Bloomberg data, the average price target for analysts covering the stock was around $7.20, but fell sharply following the postponement of the group’s FY2024 results briefing to $5.88. Analysts became more positive in June after the South Beach divestment announcement. The July 15 trigger is what provided a more positive backdrop. As of Nov 24, the average target is around $8.40. However, Citi and HSBC have targets of $9 and $11, respectively.
