Analyst Lim Siew Khee of CGS-CIMB reiterated a Buy rating on CSE Global, with a price target of S$1.15.
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Lim Siew Khee has given his Buy rating due to a combination of factors surrounding CSE Global’s strategic partnership with Amazon. The issuance of approximately 63 million warrants to an Amazon subsidiary is expected to raise significant capital and is performance-linked, potentially leading to a substantial increase in revenue over the next five years. This partnership highlights CSE Global’s growing importance as an infrastructure partner in Amazon’s global expansion plans, with the potential for annual contract values to significantly exceed previous agreements.
Additionally, the strategic alignment with Amazon is anticipated to enhance CSE Global’s credibility, paving the way for further contract wins, particularly in the electrification sector. The analyst has raised order win assumptions and EPS forecasts for the coming years, reflecting confidence in CSE Global’s capacity to meet increased project demands. The reiterated Add rating with a higher target price underscores the expectation of continued growth and strategic expansion, despite potential risks such as cost overruns or a slowdown in order wins.
In another report released on October 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a S$1.00 price target.