Courts Asia kept at "reduce" with 36 cents price target by CIMB Research

Stock Name: Courts Asia
Company Name: COURTS ASIA LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.36

SINGAPORE (Nov 13): CIMB Research is maintaining its "reduce" call for Courts Asia with a target price of 36 cents, based on nine times 2016 projected earnings.

In a note today, CIMB analyst Kenneth Ng said that it is keeping its reduce call on the electrical appliances and furniture retailer, as sales dipped with the steer away from bulk sales to focus on profitability.

While gross margins improved to 32.7%, Courts Asia's net profit was severely hit, reporting a 2QFY15 profit S$1.7 million and 1H15 profits only stacking up to 31% of its forecast.