UOB KayHian has upgraded Indofood Agri Resources (5JS.SG) to “buy” from “hold” on improved upside to its $2.54 target price following recent price weakness.
The broker expects the plantation group to report robust 4Q09 earnings growth tomorrow on the back of 40% rise in international CPO prices, higher CPO production.
OCBC Investment Research has raised ST Engineering’s (S63.SG) target price to $3.02 from $2.55 following 4Q09 results, maintaining its “hold” rating.
The research house’s new target price is pegged at FY10 P/E ratio of 19.5x vs 16x previously as it expects stock to revert to five-year mean valuation amid “improving economic conditions”.
Nomura has raised CapitaMall Trust (C38U.SG) target price to $1.43 from $1.28 to reflect more bullish valuations for retail assets; but maintains “Reduce” call.
The broker notes retail REIT’s valuers appeared more upbeat on asset values and capitalisation rates when valuing the trust’s retail portfolio following its recent 4Q09 results.
DMG has downgraded Sembcorp Marine (S51.SG) to “neutral” from “buy”, cutting its target price to $3.31 from $3.74, citing overly bullish past forecasts for new orders, saying consensus expectation of $5–$7 billion worth of new orders in FY10 is too optimistic.
Daiwa has upgraded DBS (D05.SG) to “hold” from “underperform” following recent 4Q09 results; raising its target price to $13.94 from $13.37.
The brokerage says upgrade is due to a revaluation, saying “DBS looks closer to fully-valued instead of over valued after our target price upgrade.” The higher target price also reflects earnings upgrades of 0.3% for FY10 and 4.6% for FY11.
UOB KayHian has raised DBS (D05.SG) target price to $20.60 from $17.75 following its FY09 results and is maintaining its “buy” rating.
DBS says the results are above its own expectations due to large tax writeback.
Morgan Stanley has upgraded Keppel Corp.(BN4.SG), the world’s largest rig builder, to ‘overweight’ from ‘equal weight’ on valuation grounds.
It has raised its target price to $9.35 from $8.30 on roll forward of valuation year, better fundamentals for property business, more positive view on opportunities in floating, production, storage and offloading (FPSO) market.
Shares of Genting Singapore (GENS.SI) declined as much as 4.1% to $1.18 after Citigroup initiated coverage of the stock with a “sell” rating and a target price of $0.80.
“We believe that expectations for Singapore’s Integrated Resorts have become irrationally bullish,” Citigroup analysts said in a report, citing overly agressive consensus profit forecasts of Genting’s upcoming casino operations in the city-state.
Citigroup has raised Parkway Holdings’ (P27.SG) target price to $3.40 from $2.85 on the back of earnings upgrades and has maintained its “buy” rating.
The brokerage has raised its FY09–11 earnings forecasts by 7–14% to reflect rising patient admissions and higher margins and says its new target price assumes 12-month forward PE of around 25x, which is line with the average valuation since 2004 to reflect reduced earnings risk, greater confidence in expansion plans.
OCBC Investment Research has raised Noble Group’s (N21.SG) target price to $3.73 from $3.17 on earnings upgrades, positive view for commodities sector and maintaining its “buy” rating.
“Moving into 2010, we believe that the worst is over and expect macro conditions to improve with a recovery of commodity prices, tightening demand and supply fundamentals and the emergence of inorganic growth opportunities,” says OCBC.
Genting Singapore Plc’s plan to raise as much as $1.63 billion in a rights offer will have “minimal” impact on Malaysian parent Genting Bhd., said RHB Research Institute Sdn.
The rights offer will have an “insignificant net impact” on Genting’s earnings in the first one to two years, RHB said in a report today.
It raised the target price on Genting to 9.15 ringgit ($3.74) from 7.60 ringgit and maintained its “outperform” rating.
{jcomments on}
Citigroup has maintained its “hold” call on Raffles Education Corp (RLSE.SI) but cut its target price to 54 cents from 60 cents on concerns of sharply declining organic revenue growth as well as challenges confronting subsidiary Oriental University City of China.
Raffles Education Corp reported weak 4Q results on Aug 24, posting a net profit of $9.1 million (–81% y-o-y) on the back of $44.8 million in revenue (–10% q-o-q, –28% y-o-y). Ex-investment gains, impairment and negative goodwill, recurring profit was $0.4 million.
