DBS analyst Tabitha Foo has maintained their bullish stance on UOLGF stock, giving a Buy rating on September 5.
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Tabitha Foo’s rating is based on UOL Group’s strategic moves to optimize its asset portfolio and financial structure. The company has proposed divesting non-core assets, such as the freehold commercial strata lots in KINEX, which is seen as a positive step towards streamlining its balance sheet and unlocking value. This move, coupled with UOL’s healthy net gearing, provides the company with the financial flexibility to explore higher-yielding opportunities and focus on its core competencies.
Furthermore, UOL Group’s diversified portfolio and strategic acquisitions are expected to enhance its recurring income streams. The group’s hospitality division is poised for growth following asset enhancement initiatives, and its commercial portfolio is benefiting from strong rental reversions. Additionally, UOL’s residential projects have shown strong pre-sales, with more launches planned, which adds to income visibility. These factors, along with compelling valuations and potential value unlocking from the redevelopment of Marina Square, support the Buy rating with a target price of SGD8.80.
In another report released on September 5, CLSA also initiated coverage with a Buy rating on the stock with a S$10.50 price target.