F & N - HSBC starts F&N at underweight, $5.97 target

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

HSBC starts Fraser & Neave (F99.SG) at Underweight with $5.97 target price, based on 10% discount to sum-of-parts valuation. 

Says stock fully valued after outperforming STI by 40% over last 12 months. adds, diversified business group traditionally not favoured by institutional investors or brokers due largely to conglomerate structure, which comprises residential, food & beverage, printing, publishing businesses; “the current structure is unappealing to institutional investors who prefer investing in pure play non-conglomerates.” 

Says any downturn in property markets where F&N has presence could impair earnings growth. 

Shares off 0.3% at $6.78.