CIMB Research raised its target price for Super Group to $2.43 from $2.37 and kept its ‘outperform’ rating, on expectations that the instant beverage maker’s ingredients division will benefit from rising milk tea consumption in China.
By 11:34 a.m., Super’s shares were 0.98% higher at $2.07, and have surged 57% since the start of the year, compared with the FTSE ST Mid Cap Index’s 9.7% gain.
China’s milk tea market grew by 140% in 2011, according to a study by AC Nielsen, and CIMB said it expects Super’s ingredients sales to grow 50% this year.
“We remain positive on Super’s outlook, led by its branded consumer business in Asean and supplemented by its ingredients business,” said CIMB in a report.
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