JP Morgan Assigns 'Overweight' Rating on Aldar, Sorouh; Emaar Rated 'Neutral'
By Rocel Felix
11 August 2009
DUBAI - JP Morgan has assigned an "overweight" rating and named Abu Dhabi-based Aldar Properties (ALDAR) as its top pick in its initial coverage of the UAE property sector.
Another Abu Dhabi based real estate firm, Sorouh Real Estate (SOROUH), was also given an "overweight" rating, while Emaar Properties (EMAAR), the Middle East's biggest property company, was rated as "neutral."
JP Morgan said it is favouring Abu Dhab-based property developers because they offer relatively "high visiblity" on 2009-2010 project completions and enjoy stronger underyling fundamentals. It said that the capital faces a residential shortage given the limited supply pipeline in the next two years.
While Dubai is suffering from a supply glut, JP Morgan said it is not ruling out a "surprise demand recovery" from regional investors who are exposed to less stable geo-political environments, and would likely welcome the stability of the UAE.
JP Morgan said that Aldar Properties, which was assigned a target price of Dh5.50, is expected to increase its recurring income from its investment properties. These include phase one of Yas Island, one of two key tourist destinations being developed in Abu Dhabi with flagship Formula 1 race track, theme parks, retail and hospitality.
On Emaar, JP Morgan said that its merger with the three property companies of Dubai Holdings are likely to change the company's revenue composition with of these three companies are Dubai-focused real estate developers.
"This is in contrast to Emaar's original diversification strategy that was focused on raising revenue contributions from international projects by 2010. We plan to reassess our view once details of the mergers have been released."
Maybe a day or two before the beginning of Ramadan, which will fall between August 21 and 23rd, depends on the stars. So, sometime next week, if WW markets don't surprise negatively.
Last edited by Prop on Tue 11 Aug 2009 21:41; edited 1 time in total
Ahead of market peaking, it's usual to have buy ratings in the market to help big funds to book profit.
BULLS EYE - wah Thaj!
that's what i would say. and that's why i like to go through your analysis of the trend. i remember during june HSBC gave a buy rating + target of 4.2 for EMAAR and we have seen what happened on 14.06.2009.
we need to take these "buy" or "hold" ratings lightly - but it is okay to buy and hold if we know when to jump out. i miscalculated Emaar and got out at 4.15 and re-entered at 3.95. and failed to close position at 3.9 - anyway i was and am still a novice. this forum has and is teaching me the basics. now - i have started to be a swing trader and making small bucks but no loss. at least. i too think the market will correct before it touches 2000. maybe 200 points. what do u think?
Ahead of market peaking, it's usual to have buy ratings in the market to help big funds to book profit.
What can I say Taj?
You are right on the point. I was about to post the same comment
In 1Q, 2008 one of the mulinational banks (Duetsche or Standard..can't remember) put a fair value on Aldar of Dhs 44
May be sharewadi can pull that report out ?
Right after that report...and starting 1Q 2008 upto 3Q 2008, you will find all most of the foreign funds started liquidating gradually
Taj, we don't we also have our reports ? We need a credible name like Sharewadi..for Example:
"Sharewadi has assigned an "overweight" rating on Agthia and estimated a target price of six water bottles"
By the way, I do believe Aldar will be above 5.5 by year end
In 1Q, 2008 one of the mulinational banks (Duetsche or Standard..can't remember) put a fair value on Aldar of Dhs 44
sam111sam wrote:
"Sharewadi has assigned an "overweight" rating on Agthia and estimated a target price of six water bottles"
Ha, yes, very good . I removed the sharewadi ratings a long time ago, I wasn't happy with them. Maybe it's time to revive them but I expect sharewadi would be just as wrong as anyone else. Mind you, I wan't quite as optimistic as the EFG Hermes Aldar report with a FV of 45 dhs per share, just over a year ago in June 2008 (I think that's the one you meant doublesam - HSBC had a little over 20 dhs per share, can't remember others). _________________ UAE IPO list | posting guidelines
Ha, yes, very good . I removed the sharewadi ratings a long time ago, I wasn't happy with them. Maybe ...
Wow..Sharewadi ..You are the world champion in Stock reports archives. I don't know how do you keep track of all these posts and information.
When do you think we can hit the Dhs 45 target price ? (I'm still Ok with the Dhs 20 of HSBC).
Ironically, this was actually in June when the signs of resession was very clear (I thought it was in Jan).
Please reconsider the idea of sharewadi reports. the chances of us getting it right is actually higher than most of these crapy reports.. We sit together and throw darts at the price table
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