Analyst William Tng of CGS-CIMB reiterated a Buy rating on Food Empire Holdings Limited, retaining the price target of S$2.73.
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William Tng has given his Buy rating due to a combination of factors that highlight Food Empire Holdings Limited’s growth potential and strategic positioning. The company’s efforts to expand its business in Southeast Asia and reduce dependency on the Russian market are seen as positive steps towards sustainable growth. Additionally, the easing of raw material prices and the company’s ability to maintain sticky selling prices are expected to contribute to margin expansion.
Moreover, the Monetary Authority of Singapore’s S$5bn Equity Market Development Programme is anticipated to enhance the company’s valuation, potentially re-rating it to a higher P/E ratio. Tng also notes that Food Empire could be an attractive acquisition target for Chinese F&B companies looking to expand internationally, given its presence in Russia and the CIS region. While there are risks associated with geopolitical tensions and currency fluctuations, the overall outlook supports a Buy recommendation.
In another report released on July 18, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a S$2.50 price target.
F03’s price has also changed dramatically for the past six months – from S$1.000 to S$2.400, which is a 140.0% increase.