DFI Retail Group Holdings (DFIJ – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on March 25. Analyst Adrian Loh from UOB Kay Hian maintained a Buy rating on the stock and has a $2.80 price target.
Adrian Loh has given his Buy rating due to a combination of factors that highlight DFI Retail Group Holdings’ strategic repositioning and growth potential. The company has decided to sell its Singapore food business, which, despite recently returning to profitability, has been underperforming compared to other segments. This move aligns with DFI’s ongoing strategy to divest from less profitable ventures, as seen in their previous sales in China, Indonesia, and Malaysia.
By reallocating capital from the sale, DFI aims to invest in higher return on capital employed (ROCE) businesses and support its dividend per share (DPS) for the year. Additionally, DFI is well-positioned for growth in 2025, with a projected revenue increase of 2% and underlying profit growth of 14-34%. The company’s focus on expanding its health & beauty and convenience store segments, along with optimizing its product mix, is expected to drive improved margins and overall financial performance.
Loh covers the Industrials sector, focusing on stocks such as Seatrium Limited, Sembcorp Industries, and Yangzijiang Shipbuilding (Holdings). According to TipRanks, Loh has an average return of 12.5% and a 60.00% success rate on recommended stocks.
In another report released on March 25, DBS also maintained a Buy rating on the stock with a $3.00 price target.