STOCKS NEWS INDONESIA-Citi raises Lippo Karawaci to 'buy' Tue May 7, 2013 4:15am EDT SHARE THIS ARTICLE Email Facebook Twitter Citi Research upgraded PT Lippo Karawaci Tbk to "buy" from "neutral", citing the property developer's improving margins in industrial estates and healthcare.
"In first quarter 2013, average selling price (ASP) increased 40% year-to-date as industrial estate demand remains robust while land bank is limited. As a result, we believe the gross margin expansion is likely to be sustainable," Citi analyst Felicia Barus said in a note on Tuesday. The developer expects to launch up to 4 new projects this year, which will be mainly accounted for in 2016 as the pre-sales upgrades are mostly from condominium sales that are included based on percentage of completion, the note said. Citi also raised its target price on Lippo Karawaci shares to 1,600 rupiah from 1,150 to reflect its earnings upgrade of up to 8 percent for the next 3 years. Shares of the company were up 4.38 percent at 1,430 rupiah. The broader index was up 0.92 percent. Sent from my iPhone
