Maybank Kim Eng raised its target price on Singapore property developer Keppel Land Ltd to S$4.78 from S$4.74 and maintained its 'buy' rating, citing "attractive" valuations.
Keppel Land shares were down 0.25 percent at S$4.05 on Thursday. The stock is little changed since the start of the year, lagging the gain of more than 2 percent in the Straits Times Index.
Keppel Land's management expects sales volume to fall after the latest round of property cooling measures in Singapore, but prices are likely to hold due to the low interest rate and the long-term prospects in the city-state, Maybank said.
Keppel Land's new Chief Executive Ang Wee Gee also suggested that developers with strong balance sheets like Keppel Land may even benefit if weaker companies were pressed to sell their assets at attractive prices, Maybank said.
Earlier this month, the Singapore government imposed a higher stamp duty on foreign buyers, a new levy on sellers of industrial property and a limit on loan sizes.
OCBC Investment Research upgraded Keppel Land to 'buy' from 'hold' and raised its target price to S$4.53 from S$3.49, saying the company is well positioned for the 2013 fiscal year.
Keppel Land has a strong balance sheet, significant exposure to the Chinese property sector and the potential to realise gains from the sale of an office building in Singapore, OCBC said.
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