CLSA has initiated coverage of Keppel Land (K17.SG) a “buy”, setting its target price at $4.80. While the broker is cautious on Singapore office sector as a whole, CLSA says that Keppel Land should be well placed as its office building portfolio is well located.
“Rents are bottoming out especially for the newer and higher quality buildings in the area around Marina Bay, which makes us more positive on Keppel Land, who has 76% of its office exposure is in that area.”
