0233 GMT - City Developments' issues regarding board independence and corporate governance have cast a shadow on its medium-term outlook and potential next steps, says RHB Singapore's Vijay Natarajan. The brokerage downgrades the stock's rating to neutral from buy and trims its target price to S$4.75 from S$7.30. The property developer's share price has underperformed in the past few years amid weak return on equity and an asset-heavy strategy, which resulted in high interest costs, the analyst writes in a note. However, he thinks a major shake-up could unlock value, citing catalysts including a complete revamp of the board and strategy with additional safeguards in place. Shares are 0.6% lower at S$4.97.(amanda.lee@wsj.com)
(END) Dow Jones Newswires
March 03, 2025 21:33 ET (02:33 GMT)
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