Parkson Retail Asia cut to "sell", target cut to 65 cents by OSK-DMG

Stock Name: Parkson Retail
Company Name: PARKSON RETAIL ASIA LIMITED

Research House: OSK-DMG

Price Call: SELL

Target Price: 0.65

SINGAPORE (Nov 14): OSK-DMG has downgraded Parkson Retail Asia to "sell" from "neutral" and cuts its price target from 85 cents to 65 cents, pegged at 15 times projected FY2015 earnings.

The changes reflect a cut of 18% to 25% to its FY2015-FY2017 earnings estimates after the department store operator reported a 33% y-o-y fall in September-quarter earnings to $6.2 million.

"We had earlier expected FY15 to remain difficult, but business conditions now appear to have worsened," OSK-DMG analysts James Koh and Juliana Cai said in a note today.