Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-CIMB ups target price for Overseas Union Enterprise

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STOCKS NEWS SINGAPORE-CIMB ups target price for Overseas Union Enterprise Sep 20th 2012, 02:21 Wed Sep 19, 2012 10:21pm EDT CIMB Research raised its target price for property developer Overseas Union Enterprise Ltd to S$3.38 from S$2.98 and kept its 'outperform' rating, citing expected gains from the potential sale of its hotel and shopping mall assets. By 0206 GMT, OUE shares were down 0.7 percent at S$2.93, having surged 39.5 percent so far this year, compared with the FTSE ST Mid Cap Index's 25 percent rise. OUE said on Wednesday it has offered a potential buyer exclusivity to do due diligence Marina Orchard hotel and Marina Orchard shopping mall in Singapore, which CIMB said could fetch higher-than-expected prices and special dividends from the disposal gains. "Divestment of Mandarin Orchard at this stage of the cycle when room rates and occupancy are at historical highs will allow OUE to extract near maximum value from this asset," said CIMB in a report, Sale of OUE's Mandarin Orchard hotel, which is valued at S$1.18 billion, would lead to a divestment gain of about S$1.06 billion and an increase in OUE's book value by 27 percent. 1009 (0209 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 9:55 STOCKS NEWS SINGAPORE-OCBC downgrades Tiger Airways to 'hold' OCBC Investment Research downgraded budget carrier Tiger Airways Holdings Ltd to 'hold' from 'buy' and cut its target price to S$0.81 from S$0.83, citing a challenging outlook in Australia. At 0132 GMT, Tiger shares were down 0.7 percent at S$0.755. They have gained 18.9 percent this year, compared with the FTSE ST Consumer Services Index's 4.1 percent rise. As Tiger ramps up its Australian operations, it faces an influx of capacity from competitors such as Qantas and Virgin, which will impact the prices Tiger can command and its profitability, OCBC said. Although the brokerage expects Tiger to turn profitable by the third quarter of 2013, its estimate for earnings before interest, taxes, depreciation and amortisation fell to S$35.8 million from S$48.9 million for the year ending March 2013. 0934 (0134 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) Link this Share this Digg this Email Reprints

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