CapitaLand Investment Limited, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Darren Chan from Phillip Securities maintained a Buy rating on the stock and has a S$3.69 price target.
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Darren Chan has given his Buy rating due to a combination of factors, notably the resilience of CapitaLand Investment Limited’s core operations despite headline weakness from China-driven valuation losses. While FY25 reported profit was sharply reduced by fair value write-downs, underlying operating profit grew, supported by stronger contributions from listed funds, lower financing costs, and disciplined expense control, indicating that core earnings power remains intact.
He also highlights the steady expansion of fee-based, asset-light businesses, with funds under management rising and all fee-related segments delivering year-on-year revenue growth, particularly in listed and private funds management. Management’s ability to grow recurring fee income, progress toward medium-term FUM targets, and the prospect of accelerated balance-sheet recycling, including a potential second C-REIT listing, underpin his higher target price and support the investment case, complemented by an attractive dividend yield that enhances total shareholder return.
According to TipRanks, Chan is a 4-star analyst with an average return of 10.7% and a 75.93% success rate. Chan covers the Real Estate sector, focusing on stocks such as Frasers Centrepoint, Prime US REIT, and Ascott Residence.
In another report released on February 13, DBS also maintained a Buy rating on the stock with a S$3.65 price target.