not vested
BUY maintained; lower TP to S$10.50. We maintain our BUY rating on City Developments (City Dev) and TP of S$10.50.
Our TP implies 0.9x price/net asset value (P/NAV), close to -1 standard deviation (SD) of its 5-year mean.
Although the COVID-19 pandemic has impacted most of City Dev’s business segments especially the hospitality sector, its current share price has priced in most of the downside risks.
Currently trading at 0.7x P/NAV, close to -1.5 SD of its 5-year mean, we believe valuations are too cheap to ignore as City Dev is well positioned to leverage on the recovery post-COVID.
Our TP of S$10.50 is based on a 25% discount to RNAV, which implies 0.9x P/NAV or -1SD of its 5-year mean.
Source: DBS
https://www.dbs.com.sg/treasures/aics/s ... CIT_SP.xml
It's all about "how much you made when you were right" & "how little you lost when you were wrong"