City Developments, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Lock Mun Yee from CGS International reiterated a Buy rating on the stock and has a S$12.11 price target.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Lock Mun Yee has given his Buy rating due to a combination of factors including a solid recovery in City Developments’ profitability and clearer capital allocation priorities. Despite FY25 earnings coming in below earlier projections because of impairments, core operations strengthened, underpinned by resilient residential sales, high occupancy across office and retail assets, and a more generous dividend policy with a minimum 35% payout of reported profit.
Looking ahead, Mun Yee sees further upside from the group’s active capital recycling and portfolio optimisation, which should unlock value from mature or non-core assets and support reinvestment into higher-yielding projects. Earnings forecasts for FY26–27 have been raised materially on the back of new land acquisitions and updated billing schedules, and the higher target price, based on a long-term RNAV discount, reflects this improved growth and cashflow outlook, justifying the Buy stance.
In another report released yesterday, UOB Kay Hian also maintained a Buy rating on the stock with a S$11.50 price target.