City Developments, 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$11.32 price target.
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Darren Chan has given his Buy rating due to a combination of factors, most notably the sharp rebound in earnings and successful capital recycling. City Developments’ FY25 profit surged more than threefold, far surpassing his projections, as robust Singapore residential sales and around S$2bn of asset disposals, including the South Beach stake, unlocked significant value and boosted returns.
He also highlights the more transparent and shareholder-friendly dividend policy, now set at a minimum 35% payout of reported earnings, which captures divestment gains and supported a 40% payout for FY25. In addition, he sees further upside from an enlarged development pipeline, continued strength in local home sales, planned exits from legacy U.K. assets, and potential fund-management initiatives, all of which underpin a higher RNAV target price and justify the Buy recommendation.
In another report released on March 2, UOB Kay Hian also maintained a Buy rating on the stock with a S$11.50 price target.