Analyst William Tng of CGS-CIMB reiterated a Buy rating on Food Empire Holdings Limited, boosting the price target to S$2.28.
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William Tng has given his Buy rating due to a combination of factors that highlight the potential for Food Empire Holdings Limited’s stock. The company has recently entered into a second supplemental agreement with Ikhlas Capital to address the redeemable exchange note, aiming to eliminate non-cash impacts on its reported earnings. This move is intended to reflect the true earnings power of the company, which may present an opportunity to acquire shares if there is any temporary weakness in the share price.
Additionally, the potential for a bonus issue, given the historical context and current celebrations in Singapore, could further enhance shareholder value. The company’s projected earnings per share growth and the potential for improving operating margins and market share in key areas like Russia support the positive outlook. However, risks such as geopolitical tensions and currency depreciation remain considerations. Overall, the combination of these factors underpins the Buy recommendation with a target price of S$2.28.
According to TipRanks, Tng is a 4-star analyst with an average return of 12.2% and a 73.68% success rate. Tng covers the Technology sector, focusing on stocks such as Aztech Global Ltd., Frencken Group Limited, and Nanofilm Technologies International Ltd..