Merrill gives Emaar AED3 price target
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 01 December 2008
Merrill Lynch reinstated coverage of Dubai's Emaar Properties with a "neutral" rating and a price target of 3 dirhams ($0.82).
"With market conditions having turned for the worse, we think the focus may have to turn on cash preservation, cost rationalisation and Emaar may perhaps even have to scale back its ambitions to put the business on a more sustainable path," Merrill said in a research note.
Emaar is likely to post profit per share of 0.98 dirham this year, falling to 0.29 dirham in 2009, Merrill said.
"Land is an asset and a source for future profits in a rising market but becomes a drag on the balance sheet in a falling market," it said. (Reuters)
READERS' COMMENTS
Posted by Akbar, Dubai, UAE on Thursday 4 December 2008 at 11:11 UAE time
There was a very interesting talk show on radio about how these evaluations take an average of the prevailing stock prices and recommend that as the price !! Six months ago, the fair value of this stock was in double digits :))
Posted by jimf, canada on Wednesday 3 December 2008 at 17:06 UAE time
where were u a few months back! you could have saved me a fortuned.
you guys should be completely put out of business.
Posted by michaelz, canada on Monday 1 December 2008 at 22:36 UAE time
thanks for the great assessment of emaar's stock merrill... it's much easier to make an assessment after the fact isn't it. where were you earlier this year when the stock hit 15? where were your warnings that the stock was overvalued ? that the real estate market in dubai and much of the world was a massive bubble? that we may be entering a credit crisis? oh sorry, maybe that explains why you were one of the first banks to go!
Posted by Lee, Dubai, UAE on Monday 1 December 2008 at 17:52 UAE time
Years ago I remember Emaar saying their goal was to be one of the most valuable companies in the world by 2010. A price target of AED 3 per share is nowhere close to achieving that goal!
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