Many securities banks lowered their urban development target prices by as much as 35%

Many securities banks have lowered the rating and target price of urban development, and the target price has been cut by as much as 35%.

Singapore Industrial Bank (RHB) analyst Vijay Natarajan released a report early in the morning on Monday (March 3), lowering the rating of Urban Development (CDL) to “neutral”, lowering the target price from 7.3 yuan to 4.75 yuan, and describing the stock as “fall from the grace”.

Vijay said urban development has recently made significant mistakes in board independence and governance issues, which casts a shadow on its medium-term prospects and the next stage of development.

He also lowered the environmental, social and governance (ESG) ratings for urban development by three levels and gave the stock price a 2% discount, which means the adverse impact of ESG poor performance on the stock price, which was previously a 4% ESG premium.

After the internal strife in urban development broke out last week, several analysts have lowered their ratings and target prices. A total of three analysts gave target prices below 5 yuan. Dahua Jixian gave the lowest target price, at 4.6 yuan.

Further reading

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Urban Development resumed trading on Monday, falling 7% to 4.76 yuan after opening, the lowest level since 2009, and then slightly recovered lost ground. As of 11:04, the stock was 4.96 yuan, down 3.1%.