20150612-JEFFERIES-龙湖地产（0960）：RE-RATING_TREND_TO_CONTINUE；REITERATE_BUY-676564

Longfor share re-rating is largely due to its timely adjustment in business model and prudent financial management despite high market volatility，in our view. We expect additional upside will be driven by：1）upcoming increase in sales，2）further reduction in funding cost to 6%，and 3）higher sales visibility and margin recovery through upgrading land bank.With such a high-quality credit profile，valuation is undemanding at 35% NAV disc/8.4x PE.Reit.Buy.