CGS-CIMB analyst William Tng reiterated a Buy rating on Food Empire Holdings Limited yesterday and set a price target of S$3.09.
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William Tng has given his Buy rating due to a combination of factors that suggest potential growth and stability for Food Empire Holdings Limited. One significant factor is the potential inclusion of the company in a new index that the Singapore Exchange (SGX) plans to launch, which could enhance its visibility and attract more investors. Additionally, the company’s strategic focus on consolidating its brand and market share in Vietnam is expected to lead to improved net margins, contributing to a positive earnings outlook.
Furthermore, the recent addition of Food Empire to the MSCI Singapore Small Cap Index and the possibility of a bonus issue to address liquidity concerns are seen as positive developments. The company’s strong revenue growth in Vietnam and the stabilization of its market demand in Russia, alongside the potential resolution of geopolitical tensions, are also considered catalysts for re-rating. These factors, combined with a raised target price and improved earnings per share forecast, underpin Tng’s optimistic view on the stock.
According to TipRanks, Tng is a 4-star analyst with an average return of 11.3% and a 68.25% success rate. Tng covers the Technology sector, focusing on stocks such as Frencken Group Limited, Venture, and AEM Holdings Ltd..
In another report released on September 17, UOB Kay Hian also maintained a Buy rating on the stock with a S$3.00 price target.