Hongkong Land's stock (H78.SI) surged 4.33% in intraday trading, following a bullish report from Citi analysts that raised the company's estimated net asset value (NAV) and target price. The property group's shares reached US$6.02, reflecting growing investor confidence in the company's strategic moves and improving market conditions.

Citi has increased its estimated NAV for Hongkong Land to HK$13.6 per share, up from HK$12.9, citing several positive factors. The analysts noted an uptick in office enquiries and fewer low-rent renewals, suggesting a strengthening commercial real estate market. Additionally, higher rents at the group's prestigious commercial complex, Landmark, have contributed to the improved valuation.

The bank maintained its buy rating on Hongkong Land while significantly raising its target price to US$6.80 from US$5.16. This adjustment reflects Citi's more optimistic outlook, including a narrower NAV discount of 50%, down from 60%. The reduction in the discount rate is attributed to Hongkong Land's proactive approach in divesting low-performing assets and reinvesting in higher-yielding properties. Investors are also responding positively to the company's commitment to a US$200 million share buyback program, which is expected to provide additional support for the stock price.