APAC Realty (CLN.SI) saw its stock plummet 4.79% during intraday trading on Tuesday, following a downgrade by RHB despite projections of strong sales growth. The significant drop comes as investors reassess the company's valuation in light of recent analyst recommendations.

RHB analyst Vijay Natarajan downgraded APAC Realty from Buy to Neutral, citing concerns that the stock's recent performance has outpaced its fundamentals. The company's shares have surged an impressive 129% year-to-date, largely driven by strong primary residential sales that more than doubled its first-half net profit. However, this rapid ascent has led to what the analyst considers an overvaluation of the stock.

Despite the downgrade, RHB's outlook for APAC Realty remains positive in the near term. The analyst expects the company to post 30%-40% primary residential sales growth in 2025 and projects its overseas operations to turn profitable by year-end. Reflecting this optimistic view, RHB raised its target price for APAC Realty from S$0.54 to S$0.80. However, with the stock last trading at S$0.90 before the plunge, even the increased target price suggests limited upside potential, likely contributing to today's sharp decline as investors recalibrate their expectations.