Stock Name: F & N
Company Name: FRASER AND NEAVE, LIMITED
Nomura Research in a July 21 research report says: "The recent pullback in F&N's share price reflects concerns about its property exposure but overlooks the group's expanding F&B franchise.
"At a 27% discount to our sum-of-the-parts valuation, we believe the shares have more than priced in these concerns, especially given the group's low-cost land bank and relatively small inventory in Singapore. FY2012F profit is 12% below consensus, likely due to our recognition of the change in accounting rules for Australia.
"Our sum-of-the-parts analysis suggest a value of $8.00 per share, but we ascribe a 5% holding company discount to arrive at our target price of $7.60. We highlight the dividend yield of 3% as an additional source of returns. MAINTAIN BUY."
Company Name: FRASER AND NEAVE, LIMITED
| Research House: Nomura | Price Call: BUY | Target Price: 7.60 |
Nomura Research in a July 21 research report says: "The recent pullback in F&N's share price reflects concerns about its property exposure but overlooks the group's expanding F&B franchise.
"At a 27% discount to our sum-of-the-parts valuation, we believe the shares have more than priced in these concerns, especially given the group's low-cost land bank and relatively small inventory in Singapore. FY2012F profit is 12% below consensus, likely due to our recognition of the change in accounting rules for Australia.
"Our sum-of-the-parts analysis suggest a value of $8.00 per share, but we ascribe a 5% holding company discount to arrive at our target price of $7.60. We highlight the dividend yield of 3% as an additional source of returns. MAINTAIN BUY."
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