Darren Chan, an analyst from Phillip Securities, maintained the Buy rating on City Developments (CDEVF – Research Report). The associated price target is S$6.02.
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Darren Chan’s rating is based on a combination of factors that highlight City Developments’ potential for future growth. Despite a challenging fiscal year with a 36.6% drop in PATMI and a 34% decline in revenue due to lower contributions from property development, the company has shown resilience through strong sales momentum in its Singapore development projects. The successful launch and high take-up rates of projects like The Orie, Norwood Grand, Kassia, and Lumina Grand demonstrate robust demand and effective market positioning.
Moreover, City Developments is actively working on asset monetization and value unlocking through asset enhancement initiatives and redevelopments. The company’s strategy to establish a fund management franchise and strengthen recurring income streams is expected to support its share price recovery. Despite missing its divestment target for FY24, the company achieved significant divestments and declared a final dividend, indicating a commitment to shareholder returns. These strategic moves, combined with a resilient portfolio and strong market demand, underpin Darren Chan’s Buy rating for City Developments.
In another report released on February 27, DBS also maintained a Buy rating on the stock with a S$6.70 price target.