Sheng Siong Group Ltd., the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Paul Chew from Phillip Securities maintained a Buy rating on the stock and has a S$2.55 price target.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Paul Chew has given his Buy rating due to a combination of factors that highlight Sheng Siong Group Ltd.’s growth potential and strategic expansion. The company has significantly increased its store footprint by 13% year-over-year, adding 11 new stores, with plans to open two more by the end of the year. This expansion is expected to drive revenue growth into the next fiscal year, with a projected 11% increase in store space.
Additionally, same-store sales have shown a notable increase, attributed to government vouchers and successful promotional activities, which have boosted consumer spending. Despite pressures on net margins from rising staff costs and lower finance income, the long-term outlook remains positive. The upcoming Sungei Kadut distribution center is anticipated to enhance operational efficiency and support future growth. Consequently, the target price has been adjusted upward, reflecting these growth prospects.
In another report released on October 31, DBS also maintained a Buy rating on the stock with a S$2.60 price target.