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Investing.com - JPMorgan has upgraded City Developments (SG:CIT) (OTC:CDEVY) from Neutral to Overweight and raised its price target to SGD6.85 from SGD4.85.
The upgrade follows several corporate governance developments at City Developments, including the appointment of board directors more aligned with the CEO’s vision and the retirement of dissenting director Philip Yeo.
JPMorgan believes these changes, along with the resolution of earlier board disputes and the sale of South Beach, will motivate the company to implement a more proactive monetization and deleveraging strategy.
The financial services firm expects City Developments to benefit from declining borrowing costs, the sale of non-core assets, and additional profit recognition from previously delayed projects.
JPMorgan also identified potential special dividends and share buybacks as positive catalysts that could contribute to a share price re-rating for the Singapore-based property developer.
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