Phillip Securities analyst Paul Chew has maintained their bullish stance on OV8 stock, giving a Buy rating yesterday.
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Paul Chew has given his Buy rating due to a combination of factors that highlight Sheng Siong’s resilient growth and improving profitability. He notes that FY25 performance matched forecasts, with strong fourth-quarter profit expansion driven by double-digit revenue growth and record-high gross margins, underpinned by a larger contribution from fresh products and enhanced purchasing leverage.
He also emphasizes the earnings visibility from an expanded store network, as a record number of new outlets in FY25 is set to fuel further sales and profit gains in FY26, while potential acceleration in openings, including in retail malls, adds another avenue for growth. Reflecting this improved outlook, he raises both his earnings estimates and target price, applying a premium valuation multiple that captures Sheng Siong’s attractive combination of defensive demand, operational efficiency, and scalable expansion opportunities.
In another report released yesterday, TipRanks – DeepSeek also reiterated a Buy rating on the stock with a S$3.00 price target.