Friday, October 8, 2010

F & N - Kim Eng cuts F&N to Hold, Ups target to $6.72

Stock Name: F & N
Company Name: FRASER AND NEAVE, LIMITED
Research House: Kim Eng


Kim Eng Securities downgrades Fraser & Neave (F99.SG) to Hold from Buy on valuation grounds after recent gains driven by strong Singapore home sales, says Dow jones.



Notes developer, F&B group gearing up to launch new soft drinks within next 12 months, beef up food business with recent investment in 23% stake in Malaysia-listed Cocoaland (7205.KU); “however, before these initiatives contribute meaningfully to earnings, property pre-sales will determine its re-rating potential.” 


Lifts target price to $6.72 from $6.50 to factor in development surplus from recently-acquired Pasir Ris land site in Singapore, marked-to-market values of subsidiaries.

Shares off 0.6% at $6.30.

 

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