KUALA LUMPUR: The global economic uncertainty, which has dampened property buyers’ sentiment, might be the stumbling block for SP Setia Bhd to achieve its target sales of RM3 billion this year.

In a note today, ECM Libra Investment Research said the property developer would face a slowdown on property sales should external uncertainties derail economic growth.

“However, estimated current unbilled sales of RM2.7 billion should underpin near-term earnings visibility,” it said.

Hong Leong Investment Bank Research said apart from the slowdown in sales, escalation in construction and raw material costs as well as delay in launches were among other risks faced by the company.

“The 10-month sales clocked in at RM2.3 billion, or RM2.8 billion on an annualised basis, suggest that SP Setia could fall slightly short of its stated RM3 billion sales target for financial year 2011,” it said in a note.

ECM Libra and Hong Leong Investment had maintained “hold” calls on the company.

Hong Leong Investment maintained its target price of RM4.12 but ECM Libra lowered its target price to RM3.20 from RM4 previously.