Emirates Business have reported on a Credit Suisse rating for Emaar (EMAAR), forecasting better Q4 earnings. I don't know if there's a new report, or if EB are referring to one from December 2009 (see next post). I haven't seen any report recently from CS about Emaar Properties.
Or perhaps CS asked EB to write something good about an old report to balance the bad CS report on Union Properties this week ...
And for some nostalgia, here's a topic about the Credit Suisse Emaar report from December 2008, which had Emaar at AED 4.42, and that was a sharp reduction from AED 9.25 just two months before that, which was down from AED 15 in the CS report before that one. So as CS were following the stock price down then, can we assume CS are going to be trailing the stock price back up again this year?
Emirates Business 28 January 2010:
Emaar revenue and profit projected to beat forecast in Q4
Emaar Properties (EMAAR) is likely to post higher-than-expected revenue and profit for the fourth quarter of 2009 due to more-than-expected unit deliveries in Dubai and international markets such as Turkey, said Credit Suisse.
The global financial services company yesterday gave a "outperform" rating to the Dubai-based developer, with an upside potential of 67 per cent and a target price of Dh5.25. The potential was calculated at the closing price of Dh3.14 on January 25. An HC Securities analyst, on the other hand, told Emirates Business that the agency has set Emaar's target price at Dh6.6.
Majed Azzam, Mena Real Estate Analyst at HC Brokerage, said: "Our preferred exposure is Emaar given its strong investment portfolio that should benefit from an expected pick up in tourism activity this year and healthy balance sheet. We have a target price on Emaar of Dh6.6 per share, giving an upside potential of 124 per cent."
Upside potential was calculated on yesterday's closing at Dh2.95 on the Dubai Financial Market.
The UAE realty exhibited signs of recovery in 2009 with prices gaining roughly eight per cent from the trough. Volumes also picked up in the third and fourth quarters of 2009.
In the report, Credit Suisse said it expects a "moderate" fourth quarter in general for UAE real estate companies, as earnings are mainly a function of delivery of properties that were sold in the past.
It cut the cumulative earnings estimates (2009-2011) for Aldar Properties by eight per cent and Emaar by 27 per cent, respectively, on the back of changes in property delivery schedules. However, it kept earnings estimates unchanged for Sorouh and Union Properties.
Credit Suisse also expects a potential asset sale for Aldar. "We believe that it is likely that Aldar could consider off-loading the cost of the F1 Race Track through a strategic sale (most likely to a government-owned investment vehicle). This would be a positive catalyst as it shows the continued government support for Aldar," it added.
Azzam said their target price on Aldar was Dh6.2 per share.
And here's the Reuters article from last month about CS rating of Emaar.
Reuters 15 December 2009:
Credit Suisse ups Emaar Properties to outperform
by Fareha Khan
Credit Suisse upgraded Emaar Properties to "outperform" from "neutral" and said the cancellation of the company's proposed merger with Dubai Holding's real estate subsidiaries eliminated Emaar's exposure to additional real estate assets in Dubai.
One of the main reasons for the brokerage's prior rating on Emaar was due to the uncertainty around the merger, which is not the case anymore, Credit Suisse wrote in a note to clients.
Last week, Emaar had said it would not merge with Dubai Holding's property units, a move analysts said protected the developer from Dubai Holdings' vulnerable debt position.
"We believe that Emaar has now minimum exposure to Dubai in terms of property sales," said the brokerage, adding that the company has sufficient cash flow to repay short-term debt maturities.
The brokerage maintained its price target at 5.25 dirhams on shares of Emaar.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Disclaimer: Investing in stocks is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold stocks and/or any other investments. Seek professional advice and do your due diligence before making investment decisions. In particular, do not assume anything you read on this site is correct or accurate. You should accept that only you can be responsible for any investing decisions you make.
2008 FY
FAQ
Search
Print-friendly
Profile
Private messages
Register
Log in
...
