City Development Limited Image source: Yahoo Finance SG
City Dev (SGX) Daily, 12-mth with valuation metrics & target price Chart source: Tradingview
City Development had been under-performing the Straits Times Index and the time looks right for investors to give a serious consideration to invest in the company. Valuation wise, it’s current Price-to-Earnings (P/E) of 5.8x is even lower than its valuation during the bottom of the Great Financial Crisis (GFC) back in 2009. Its Price-to-Book of 0.8x is also pretty close to the lowest its been over the past 20 years. Most analysts from local broking firms has a Buy recommendation on the stock, with target prices ranging from $8.86 to $10.50.
Volume analysis indicated strong signs of accumulation since early 2022. Currently, price action seems to imply a possible Broadening Formation in the making. Such formation is deemed to be bullish when the upper boundary is flattened. Next 2 resistance levels are at $7.90 and $8.60. Once it successfully break above this formation (which is above $8.60), then possible target level for this formation can be set at $10.
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Disclaimer:
This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
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