Wharf back to a buy

WHARF has interests in property, infrastructure, hotels and communications.

ABN Amro has upgraded Wharf from a sell to a buy, saying it is the most undervalued stock in its sector.

'We believe that the valuation is reaching a fairly attractive level,' ABN Amro said.

Equally as important are signs of recovery in several of Wharf's key businesses, including hotel/retail rental and its cable TV operation.

'As a hotel and large shopping mall owner in the Tsim Sha Tsui tourist area, Wharf's rental portfolio will benefit most from the uptick in tourism,' ABN Amro said.

Although gearing is estimated at 44 per cent, ABN says that Wharf is not under much pressure to repay debt.