Tuesday, January 14, 2020

CapitaLand May Finally Be Breaking Out On A Clearer Path To Strong, Sustainable ROEs

I’ve long lamented that no matter what CapitaLand (OTCPK:CLLDY) (CATL.SI) did, it just couldn’t seem to break out above S$4/share. That seems to be changing, though, as investors have not only gotten more bullish on the near-term prospects for Singapore’s property market, but also management’s commitment and ability to drive long-term ROEs toward the double-digits (including gains and revaluations).

I’ve been bullish on CapitaLand for a while, and I still am. With demonstrated successes in Singapore and China to build on, and significant growth opportunities in India, Vietnam, fund management, and managed residences, I believe CapitaLand is well on its way with a plan that will deliver better returns for investors. I believe fair value is at least another 15% higher from here, with upside beyond that if management execution can shrink the risk premium in the shares.

Read more here:
CapitaLand May Finally Be Breaking Out On A Clearer Path To Strong, Sustainable ROEs

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