City Developments' share price will likely be rangebound in the near term until investor concerns are addressed, RHB Singapore vice president of equity research Vijay Natarajan says.
The Singapore property developer's executive chairman is discontinuing his lawsuit against his son, the group CEO of the company and other board members, he notes.
Although the move could soothe concerns about the company, it doesn't fully address the various corporate governance issues and board differences raised during the dispute, he says.
Investors want to see additional safeguards and steps that will be put in place to avoid similar problems from arising in the future, he adds. RHB maintains a neutral rating and target price of S$4.75 on the stock, which is at S$5.14.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.