not vested
BROKER CALL Hong Kong's New World Devt raised to 'overweight' - Lehman Brothers
HONG KONG (XFN-ASIA) - Lehman Brothers said it has upgraded New World Development (NWD) to "overweight" from "equalweight", but cut the target price to 25.75 hkd from 27.50.
The new target still offers more than 30 pct upside from the property developer's current price.
"We believe NWD's 33 pct correction year-to-date is excessive and more than reflects the 1-28 pct correction of its listed subsidiaries," Lehman Brothers said.
The brokerage expects to see good pre-sales at the company's two key residential projects Wylie Court and Hanoi Road in the second half of the year.
It raised New World's net profit forecasts for 2008, 2009 and 2010 by 14 pct, 32 pct and 30 pct respectively, to 5.56 bln, 5.87 bln and 5.16 bln hkd.
"While earnings have been marked up, our end-09 net asset value sees a 7 pct decline to reflect the decreased market value of (units) New World China, New World Department Store, and NWS Holdings," it said.