Phillip Securities analyst Darren Chan maintained a Buy rating on CapitaLand Investment Limited (9CI – Research Report) today and set a price target of S$3.65.
Darren Chan’s rating is based on CapitaLand Investment Limited’s strategic initiatives and financial performance. The company has demonstrated a strong ability to generate recurring fee income, which grew by 9.3% in FY24, driven by growth across all segments. This focus on fee-driven earnings, combined with a strategic shift towards an asset-light model, positions the company well for sustainable growth.
Darren Chan also highlights the company’s robust balance sheet management, with significant divestments amounting to S$5.5bn in FY24, which have enhanced capital efficiency and reinvestment capacity. The company’s low debt/equity ratio of 0.39x provides a solid foundation for future acquisitions and expansion. Additionally, the revised dividend payout policy to a minimum of 50% of cash PATMI reflects a commitment to enhancing shareholder returns. These factors contribute to the Buy rating, as CapitaLand Investment Limited is well-positioned to achieve its future growth targets.
In another report released on March 3, UOB Kay Hian also maintained a Buy rating on the stock with a S$3.95 price target.