New World Development Could Have Greater Flexibility for Deleveraging
Dow Jones
Oct 05
0545 GMT - New World Development could have greater flexibility for further deleveraging after the termination of the 11 SKIES sublease, which removes a major overhang for its stock, says DBS Group Research analysts in a note. The sublease's early termination likely frees the company from heavy long-term financial obligations amid a challenging operating environment, they say. The Hong Kong conglomerate's potential to reduce financial leverage--debt used to fund an investment for higher returns--is likely to be a key driver of New World's shares, which has fallen 25% in the past six months, the analysts add. DBS cuts its target price to 7.03 Hong Kong dollars from HK$11.17 and maintains its hold rating. Shares fall 1.55% to HK$5.73.
At the request of the copyright holder, you need to log in to view this content
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.