SELL Golden Meditech Closing price: $3 Target price: $3 Share price performance (%) 1wk: 19.46 3mths:4.96 1mth:0.74 1yr:179.1 The rating on Golden Meditech was downgraded from 'buy' on rising risk concerns after the mainland pharmaceutical firm said it would spend $453 million on a 51 per cent stake in a start-up company. 'We see tremendous growth potential from this investment but meaningful business and execution risks somewhat undermine our original investment thesis for Meditech as a unique Chinese healthcare play,' analyst Adam Lau said in a report. Citigroup Smith Barney BUY Imagi International Hldgs Closing price: $1.45 Target price: $3.20 Share price performance (%) 1wk: 5.22 3mths:7.4 1mth:8.08 1yr:56.5 DBS has initiated coverage with a 'buy' recommendation, saying the stock is 'totally undervalued' at 12 times 2005 earnings. The computer graphics animation (CGI) company, formerly Christmas tree maker Boto International Holdings, is an outsourcing partner of DreamWorks and also develops its own titles, but the share price implies 'virtually zero valuation' to its top-notch CGI studio. It was also at a deep discount to its peers, analyst Wallace Cheung said in a research note. DBS Vickers Securities HOLD Sun Hung Kai Properties Closing price: $63.50 Target price: $70 Share price performance (%) 1wk: 3.05 3mths:9.89 1mth:4.5 1yr:55.86 The brokerage has lifted its target price for the developer on upbeat expectations for development profits and rental income. The Victory Arch project at Kowloon MTR station would be a major contributor of development profits next year, it said. 'With a growing recurrent income from its investment portfolio and an excellent balance sheet, this should be a core property holding,' it said in a research note. Tai Fook Research