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Meanwhile CDL’s share price is below $7. “It is now trading at 0.74 times price to NAV, close to its historical trough since 2013 of 0.7 times. When the news on Sincere was released in Oct 2020, CDL’s ahre price fell to $6.20,” DBS points out. “We believe bad news are priced in at current levels of below $7, which is close to the bottom.”
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Among the reasons DBS cites for a re-rating are: i) continued optimism in Singapore residential market; ii) potential asset recycling into the reported potential listing of a new UK REIT; iii) further potential asset divestment as it restructures its hospitality portfolio and iv) recovery of its hospitality portfolio following from the progressive reopening globally.
According to Bloomberg, all the recommendations on CDL in the past three months have been either buy, outperform, overweight or add.