Food Empire Holdings Limited, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst John Cheong from UOB Kay Hian maintained a Buy rating on the stock and has a S$2.40 price target.
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John Cheong has given his Buy rating due to a combination of factors that highlight Food Empire Holdings Limited’s promising growth prospects. The company is expected to achieve significant core earnings growth, driven by its strong brand presence and leadership in key markets such as Russia, Kazakhstan, and Vietnam. This market leadership, coupled with a strategic focus on high-growth emerging markets, positions Food Empire to capitalize on the increasing demand for instant beverages, particularly among younger consumers who value convenience and affordability.
Additionally, the expansion of four new manufacturing facilities across Malaysia, Kazakhstan, Vietnam, and India is set to further drive growth by increasing production capacity. The supplemental agreement for the company’s redeemable equity note is also expected to stabilize earnings by eliminating volatility from the third quarter of 2025 onwards. These strategic initiatives, combined with favorable market trends such as falling coffee prices and a strengthening Russian Ruble, underpin the positive outlook and justify the Buy rating with a raised target price.
In another report released on July 8, CGS-CIMB also reiterated a Buy rating on the stock with a S$2.28 price target.