UBS initiates coverage on Sime Darby Property stock with Buy rating

Published 30/06/2025, 15:38
UBS initiates coverage on Sime Darby Property stock with Buy rating

Investing.com - UBS initiated coverage on Sime Darby Property Bhd (KLSE:SDPR) (OTC:SIMEF) with a Buy rating and a price target of MYR1.74, citing the company’s exposure to data centers and industrial property.

The research firm highlighted Sime Darby Property’s strategic shift toward industrial property and its potential to benefit from strong foreign direct investment (FDI) tailwinds. UBS expects the company to expand its industrial build-to-lease property beyond its two initial data center deals with Google (NASDAQ:GOOGL).

UBS forecasts a 16% headline EPS CAGR for Sime Darby Property over 2024-27, which it notes is the second fastest among its coverage universe and higher than the consensus estimate of 9% CAGR.

The firm believes the strong earnings growth and exposure to high-quality data center income justifies an 18x PE valuation multiple for the stock. According to UBS, Refinitiv’s current 16x multiple indicates that the upside potential for the share price is not yet priced in.

Sime Darby Property is a Malaysian property development company with growing interests in industrial and data center properties, positioning it to capitalize on Malaysia’s increasing attractiveness for technology infrastructure investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.