OCBC lowers Osim target price

Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 1.37

OCBC Investment Research lowered Singapore’s massage chair maker Osim International (OSIL.SI) target price to $1.37 from $1.52 but maintained its buy outlook.

OCBC said it has lowered its net profit forecast for Osim  in 2011 to 2012 from 7.1% to 2.7% respectively.

The brokerage said that Osim International third quarter net profit of $13.1 million was 10.4% lower than its estimate.

Osim faces a risk of lower sales growth as the euro zone crisis and sluggish U.S growth weigh on consuming spending in Asia.

As such, the brokerage also lowered its earings per share outlook for 2012 to 15 times from 12.9 times.    

At 10:00 a.m., shares of Osim were 0.02% lower at $1.18. They have fallen 28% since the start of the year.