Analyst John Cheong of UOB Kay Hian maintained a Buy rating on Frencken Group Limited (E28 – Research Report), with a price target of S$1.16.
John Cheong has given his Buy rating due to a combination of factors including Frencken Group Limited’s strong financial performance and growth prospects. The company’s earnings for 2024 were in line with expectations, showing a 14% year-over-year increase, driven by a 7% growth in revenue and an improvement in gross margins. This growth was primarily fueled by the semiconductor, analytical life sciences, and medical segments, which offset declines in the automotive and industrial automation sectors.
Furthermore, Frencken Group is cautiously optimistic about its future, expecting the semiconductor segment to continue driving revenue growth in the first half of 2025. Despite the uncertain global economic outlook, the semiconductor industry is anticipated to recover, supporting the company’s positive long-term outlook. These factors, combined with the company’s strategic positioning in key growth segments, underpin John Cheong’s Buy rating for Frencken Group Limited.
According to TipRanks, Cheong is a 4-star analyst with an average return of 11.2% and a 65.06% success rate.
In another report released on February 28, DBS also maintained a Buy rating on the stock with a S$1.48 price target.