SM Prime Remains Buy Call as 2H Performance Likely Stronger

Dow Jones
08/19

0549 GMT - SM Prime retains its buy rating thanks to its solid fundamentals, Maybank Securities' Raffy Mendoza says in a research report. These include a likely seasonally stronger 2H performance stemming from holiday spending at shopping malls and expected modest improvement in residential revenue and reservation sales due to faster construction progress, the analyst says. Management mentioned that it is poised to open the 'SM Neo Verde' mall in Santa Rosa, Laguna, in 4Q, and highlighted renovation work at flagship malls, the analyst notes. The brokerage raises the stock's target price to 39.50 pesos from 38.00 pesos to reflect roll-forward of earnings estimates to 2H. Shares are 0.7% higher at 18.24 pesos.

 

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