Stock Name: Hyflux
Company Name: HYFLUX LTD
Company Name: HYFLUX LTD
| Research House: OCBC | Price Call: BUY | Target Price: 1.81 |
OCBC Investment Research has lowered its target price on Singapore water treatment firm Hyflux (HYFL.SI) to $1.81 from $2.26 but maintained its buy rating.
OCBC said it cut its target on Hyflux due to the overall market weakness. The stock has also fallen around 23% since Hyflux reported a slightly muted set of first-half results in early August, it added.
OCBC said it cut its target on Hyflux due to the overall market weakness. The stock has also fallen around 23% since Hyflux reported a slightly muted set of first-half results in early August, it added.
However, OCBC said that the sell-down over the past few weeks has been slightly overdone as the market was currently assigning a forward price-earnings ratio of only 13.6 times to the stock, below the mean of 21.0 times.
Hyflux’s order book has also improved significantly, standing at $2.1 billion as of end June, and the water industry is expected to be quite resilient even in a downturn as clean water is an essential commodity, OCBC noted.
At 11:03 a.m., Hyflux shares were up 0.3% at $1.505.
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