Analyst Darren Chan of Phillip Securities maintained a Buy rating on CapitaLand Investment Limited, retaining the price target of S$3.65.
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Darren Chan has given his Buy rating due to a combination of factors that highlight CapitaLand Investment Limited’s strong performance and growth potential. Despite a decrease in overall revenue due to the deconsolidation of CLAS, the company has shown resilience with a 2% year-on-year increase in total revenue when excluding this factor. The Fee Income-related Business (FRB) has been a key driver, with a 7% growth supported by higher event-driven fees and contributions from SC Capital Partners.
Moreover, the company’s fundraising momentum has been robust, with significant equity raised both for private and listed funds. This includes the successful listing of CapitaLand Commercial C-REIT, which opened trading significantly above its IPO price. The analyst maintains a positive outlook on CapitaLand Investment Limited due to its asset-light strategy and growing recurring fee income streams, which are expected to thrive in a lower interest rate environment, further enhancing fundraising and transaction activities.
According to TipRanks, Chan is a 4-star analyst with an average return of 9.8% and a 71.43% success rate. Chan covers the Real Estate sector, focusing on stocks such as CapitaLand Investment Limited, City Developments, and Prime US REIT.
In another report released on November 7, DBS also maintained a Buy rating on the stock with a S$3.65 price target.