DFI Retail Group Holdings, the Consumer Goods sector company, was revisited by a Wall Street analyst today. Analyst Lim Siew Khee from CGS-CIMB reiterated a Buy rating on the stock and has a $4.50 price target.
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Lim Siew Khee has given his Buy rating due to a combination of factors including DFI Retail Group Holdings’ promising margin expansion and increased dividend payout. During the company’s recent Investor Day, DFI set ambitious operating margin targets for FY28F that surpassed expectations, prompting a positive revision in EPS estimates for FY26F-27F by 6-10%. This optimism is reflected in the raised target price of US$4.50, based on an 18x forward P/E ratio.
Additionally, DFI’s strategic plans to expand its Health & Beauty segment, particularly in Indonesia, and its focus on high-growth areas like CVS in China, further support the Buy rating. The company’s commitment to maintaining a 25% leverage ratio provides flexibility for potential M&A activities, which could enhance growth. These factors, combined with the potential for special dividends if M&A plans do not materialize, underpin the positive outlook for DFI Retail Group Holdings.
In another report released today, DBS also maintained a Buy rating on the stock with a $4.50 price target.