Excerpts from latest analyst reports....
Nomura Equity Research maintains 'buy' on BIOSENSORS
Analyst: Lim Jit Soon, CFA
Management continues to maintain its guidance of 20-30% progress in revenues in spite of concerns about pricing pressures in China and Japan.
While growing its core business, the group is also looking to bolt on acquisitions to achieve its strategy of becoming a medical device platform company.
However this will be done judiciously to ensure value is enhanced for shareholders. Management also indicated that it will be seeking a share buyback mandate at the AGM scheduled for the end of this month.
We continue to maintain our Buy rating for Biosensors. Target price: $1.84.
Recent story: 'Average down YANGZIJIANG', 'buy BIOSENSORS, LIAN BENG'
Daiwa Securities says sell CAPITALAND
Analyst: David Lum, CFA
We reaffirm our Sell (5) rating for CapitaLand shares because we have serious concerns over the state of the Singapore residential market and the worsening of the supply-demand imbalance in unsold inventory and unit completions.
The major risk to our negative call would be the realisation of a soft-landing scenario in which prices remain stable while the government refrains from any further cooling measures.
> How we differ: We are still one of the few houses expecting a multi-year downturn in home prices, forecasting declines of 3-6% YoY for 2012, 11-12% YoY for 2013, and 9-11% for 2014.
Our new target price is still the lowest on Bloomberg.
Daiwa's target for ASCOTT REIT is the highest among 8 brokers
Analyst: David Lum, CFA
What's new: Ascott Residence Trust (ART) announced on 9 July (before market opening) a related-party transaction with its sponsor, CapitaLand (CAPL SP, S$2.98, Sell ).
What we recommend: We reiterate our Buy (1) rating, and raise our target price to S$1.35 from S$1.31, pegged to parity with our ten-year DDM valuation.
We still regard ART as attractively valued, trading at 2012-14E DPU yields of 7.4-8.0% compared with the S-REIT sector average of 6.4-7.0%, based on 0ur forecasts and a discount to its book value of S$1.31 as at 31 March 2012 compared with a 2% premium to end-March book for the S-REIT sector.
The major risk to our positive call is a sudden deterioration in the global GDP-growth outlook or renewed Eurozone fears.
> How we differ: Our target price of S$1.35 is the highest among Bloomberg's sample of eight brokers, and we expect the consensus target price to trend up after today's announcement.