City Developments, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Adrian Loh from UOB Kay Hian upgraded the rating on the stock to a Buy and gave it a S$8.50 price target.
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Adrian Loh has given his Buy rating due to a combination of factors influencing City Developments’ performance. The company demonstrated strong divestment momentum in the first half of 2025, which helped offset operational challenges such as foreign exchange losses and increased interest costs. These divestments exceeded expectations and are anticipated to fund a special dividend, highlighting the company’s commitment to shareholder returns.
Additionally, City Developments experienced a surge in property development sales, which contributed positively to its financial performance. Despite the challenges faced by its hotel and investment property segments, the company’s strategic asset sales are expected to stabilize its balance sheet. The combination of these factors, along with the company’s ongoing capital recycling strategy, underpins Adrian Loh’s decision to upgrade the stock to a Buy rating with a higher target price.