Why are CapitaLand Investment shares falling?
The property investment manager is still sitting on top of a 10% market cap gain this year. But when will the bleeding stop?
- CapitaLand Investment Limited (SGX: 9CI) share price dropped by an additional 1.3% this week
- The blue-chip counter closed the week at S$3.87 a share on Friday (03 June 2022)
- Analysts foresee an 11% price upside potential for the stock in the next 12 months
- Keen to trade CLI shares? Open an account with us to start today.
CapitaLand Investment stock price: what’s the latest?
CapitaLand Investment (CLI) shares continue to slide this week, despite CIMB analysts newly initiating coverage on the counter with an ‘add’ rating.
The real estate investment company’s market capitalisation has declined by approximately 6.5% in the last one month, as markets entered sell-off mode amidst ongoing recessionary concerns related to higher interest rates and restrictive national Covid-19 measures.
In terms of stock outlook, CLI shares have an average rating just above ‘outperform’ and an average price target of S$4.29 a share, according to the latest SGX StockFacts data.
The price target equates to an 11% upside potential, based on CLI’s last traded price of S$3.86.
How do analysts view CLI?
Last week, CIMB’s equity research team kicked off coverage on CLI with an ‘add’ call and target price of S$4.59 a share.
The price estimate was pegged to an assumed 10% discount to a sum-of-parts revalued net asset value of S$5.10.
In the investment note, CIMB also forecasted a 16% compound annual growth rate in operating profit after taxation and minority interests (PATMI) over FY2021-FY2024.
This is expected to be driven by growth in funds under management and fee income, efficient capital deployment, and improved operating performance of its investments and lodging properties as borders reopen.
‘We believe this will underpin return on equity expansion from operating PATMI from 3-4% (between 2017-2020) to ~5% by FY2024 and narrow its current valuations gap versus peers,’ the researchers wrote.
Meanwhile, UOB maintained a ‘buy’ rating on CLI shares alongside an unchanged target price of S$4.13 on 13 May 2022, citing no changes to its earnings forecasts as the company’s outlook for 2022 ‘remains strong with China potentially providing more earnings certainty should Covid-19 restrictions be lifted’.
Thinking of trading CLI shares?
*Awarded the Best Online Trading Platform by Influential Brands in 2021.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets