CGS-CIMB analyst Lock Mun Yee reiterated a Buy rating on CapitaLand Investment Limited yesterday and set a price target of S$4.30.
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Lock Mun Yee has given his Buy rating due to a combination of factors that highlight CapitaLand Investment Limited’s strategic positioning and potential for growth. Despite a drop in revenue in the first half of 2025, primarily due to the deconsolidation of CapitaLand Ascott Trust, the company has shown resilience with a 7% year-on-year increase in topline revenue when excluding this factor. The company’s strategy to invest in thematic products and form strategic partnerships is expected to enhance portfolio efficiency and scale funds under management, which aligns with its target to reach S$200 billion in funds under management by 2028.
Furthermore, the company’s strong recurring fee-income base provides good income visibility, supported by growth in fee income-related businesses such as listed funds, lodging, and commercial management. The company’s asset-light fund management model is also a positive factor, offering potential for faster growth in funds under management, which could boost fee income and strengthen return on equity. However, potential risks include a challenging real estate outlook and a prolonged high-interest rate environment that could impact investment returns.
In another report released today, DBS also maintained a Buy rating on the stock with a S$3.65 price target.
9CI’s price has also changed slightly for the past six months – from S$2.510 to S$2.720, which is a 8.37% increase.