CGS-CIMB analyst William Tng reiterated a Buy rating on Food Empire Holdings Limited yesterday and set a price target of S$2.73.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
William Tng’s rating is based on Food Empire Holdings’ strategic initiatives and potential for growth. The company has entered into a collaboration with Santan to offer its products on AirAsia flights, which is expected to enhance brand visibility across Asia. This partnership is seen as the first of many initiatives with Ikhlas Capital, which could further expand the company’s business opportunities.
Additionally, the company’s valuation is expected to improve due to the Monetary Authority of Singapore’s Equity Market Development Programme, which could lead to a re-rating of its stock. Despite potential short-term challenges, such as a non-cash revaluation loss, the long-term growth prospects, including a projected EPS CAGR of 10.3% from FY24 to FY27, support the Buy rating. The company’s ability to maintain its market share in Russia and the potential resolution of the Russia-Ukraine conflict are also seen as positive factors for its future performance.
In another report released yesterday, UOB Kay Hian also maintained a Buy rating on the stock with a S$2.40 price target.