Credit Suisse raised its first flat (0142.HK) rating from neutral to stronger than the market, raising the target price of the stock from HK$8.70 to HK$12.43.

Credit Suisse believes that the factors that dragged down Savills's performance in 2012 have been eliminated this year. According to the bank, the profit contributions of PLDT and Philex are expected to have bottomed out in 2012 and the first half of 2013, respectively; over the past 11 years, Savills's profit momentum has been an important driver of stock prices. Savills shares are discounted by 41% compared to net assets per share. As profits drive investors' expectations that net assets per share will rise, the share price discount rate is expected to narrow further compared to net assets per share.