Bank revises price targets for UAE firms

Nomura upgraded targets on property firms in the UAE yesterday in the expectation the stabilising property market would pull stock prices out of their troughs faster than originally anticipated.

Nomura upgraded price targets of Aldar, Deyaar Development, Emaar Properties, Ras Al Khaimah Properties, Sorouh Real Estate and Union Properties.

Easing liquidity conditions following reports about the upcoming $10 billion Dubai government bond programme, also boosted optimism, the bank said, adding that likely defaults of some private property developers might open the door for "vulture" investment in distressed assets.

"We forecast stabilisation in the secondary property markets, which we are now starting to observe. In line with our original thesis, we upgrade our target prices based on where we think we are in the cycle," Nomura's equity strategist Chet Riley, said in a note to clients.END