KUALA LUMPUR: Maybank Investment Bank Bhd Research says it is positive on S P Setia Bhd's (SPSB) latest acquisition of Leong Bee Court in Singapore given its strategic location and fair pricing.
The research house maintained its buy recommendation on S P Setia at RM6.50 and raised its target price for the stock to RM7.13 (from RM7.10 previously)
It said that despite minimal impact to earnings and RNAV, this project was important as it would strengthen SPSB's brandname in Singapore and showcase its development capabities and this in turn, will boost demand for SPSB's PROPERTIES [] in Malaysia by Singaporeans.
'We fine-tune our FY11-13 forecasts for the acquisition and raise RNAV by 1 sen.
'Our new TP is RM7.13 (10% premium to RM6.48 RNAV; ex-bonus TP is RM4.75),' it said in a note April 15.
The research house maintained its buy recommendation on S P Setia at RM6.50 and raised its target price for the stock to RM7.13 (from RM7.10 previously)
It said that despite minimal impact to earnings and RNAV, this project was important as it would strengthen SPSB's brandname in Singapore and showcase its development capabities and this in turn, will boost demand for SPSB's PROPERTIES [] in Malaysia by Singaporeans.
'We fine-tune our FY11-13 forecasts for the acquisition and raise RNAV by 1 sen.
'Our new TP is RM7.13 (10% premium to RM6.48 RNAV; ex-bonus TP is RM4.75),' it said in a note April 15.
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