• Home
• /
• Local business

Citigroup Cuts Target Price for Emaar, Aldar, Sorouh

DUBAI — Citigroup kepts its “buy” rating, but cut its price targets for Dubai-based Emaar Properties, and Abu Dhabi’s Aldar Properties and Sorouh Real Estate, citing property prices have dropped from their peak levels in the last quarter of 2008.

Emaar’s target price was halved to Dh7.70 from Dh15; Aldar was cut to Dh10 from Dh16.60, while Sorouh was cut ot Dh3.70 from Dh5.60.

All three property companies posted lower first quarter earnings compared to a year ago, as the global economic downturn hastily curbed the robust growth experienced by the United Arab Emirates property sector in the last five years.

With thousands of expatriates that had fueled the boom sent home after losing their jobs, the real estate industry is not seen recovering until the latter part of 2009.

Citigroup however, maintained its “buy” recommendation, saying all the negative news in the sector have already been priced in.

It added that credit conditions for government projects since the issuance of a $10-billion bond by Dubai has improved.

· rocel@khaleejtimes.com