{"id":326789,"date":"2024-02-16T01:54:05","date_gmt":"2024-02-15T17:54:05","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326789"},"modified":"2024-02-16T01:54:07","modified_gmt":"2024-02-15T17:54:07","slug":"stock-in-focus-ayala-land-inc-ali-16-feb-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-16-feb-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 16 Feb 2024 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>16 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.67<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Our growth forecasts for offices remain tempered despite early signs of recovery. We reiterate that clients should focus on property companies that stand to benefit on rate cut expectations such as our top property pick, ALI.<\/p>\n\n\n\n

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

Office vacancies better than expected (but not so good either)<\/h3>\n\n\n\n

Collier\u2019s property report shows that 2023 vacancy ended at 19.6%, slightly better than previous forecast of 21.2% but 90 bps higher than the 3rd quarter (Q3)\u2019s 18.7%. A portion of this is attributable to an influx of 611.7k sqm of new office space completions vs slow demand coupled with surrenders from non-renewals of pre-pandemic leases. <\/p>\n\n\n\n

We reiterate that the emergence of different work setups, like WFH and Hybrid, are the main drivers which tempered demand these past years. The latest Collier\u2019s data reinforces our view that the Office segment would likely exhibit the slowest growth among our covered property companies.<\/p>\n\n\n\n

Demand pickup<\/h3>\n\n\n\n

Moving forward however, we expect BPOs to remain as the main demand drivers, with the BPO industry requiring around 2-Million sqm worth of office space for 2024-2028. Similarly, online data aggregator Statista projects a CAGR growth of 8.2% for 2024-2028 as well. We also note that the IT and Business Process Association of the Philippines (IBPAP) projects a 7-8% growth in staffing for 2024, which could fuel additional demand for office spaces.<\/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>