{"id":324986,"date":"2023-09-21T01:41:14","date_gmt":"2023-09-20T17:41:14","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324986"},"modified":"2023-09-21T01:41:16","modified_gmt":"2023-09-20T17:41:16","slug":"stock-in-focus-ayala-land-inc-ali-21-sept-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-21-sept-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 21 Sept 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>21 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 37.57<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We recommend investors to accumulate slowly for the mid-term as the cheap valuation for ALI can’t be ignored with a consensus Target Price of P37.57 per share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Hawkish BSP may delay property recovery<\/strong><\/p>\n\n\n\n

The Philippines recently broke its six-month streak on decelerating inflation with the release of August inflation data at 5.3% vs 4.7% last July. The BSP\u2019s recent reiteration of their stance that inflation should be within their target of 2-4% before cutting rates sends the signal that rates may remain higher for longer. This, in turn, may delay the long-awaited recovery of the property sector. The property index dropped by as much as 1.43% following the BSP’s statement as 3 heavyweights; SMPH, ALI, and RLC closed in the red, taking a combined 38.42 pts from the index.<\/p>\n\n\n\n

Inflation forecast revised higher<\/strong><\/p>\n\n\n\n

We note that despite the recent uptick in headline inflation, which has prompted the BSP to revise its inflation forecast for the year to 5.6%, easing is still expected at 2024 with their inflation projection at 3.2%. This means that although inflationary pressures are expected to continue for the year, we see 2024 as a recovery period for property stocks as the BSP starts to pivot monetary policy as inflation starts to cool.<\/p>\n\n\n\n

ALI revenues impervious to high interest rates<\/strong><\/p>\n\n\n\n

We previously mentioned that in the medium term, residential demand will continue to be composed of their higher end offerings, evidenced by massive take-up of their ALVEO project in BGC. We are partial to ALI as their offerings, which is primarily composed of higher end properties, is less sensitive to high interest rates, based on the sensitivity analysis of interest rates in relation to quarterly revenues.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>