Super Group price target cut to 83 cents from $1.42 by CIMB

Stock Name: Super Group
Company Name: SUPER GROUP LTD.

Research House: CIMB

Price Call: SELL

Target Price: 0.83

SINGAPORE (Nov 11): CIMB has slashed its price target for Super Group from $1.42 to 83 cents, based on 16 times projected FY2016 earnings, after lowering its EPS estimates by 23% to 26%.

The changes came after the instant beverage maker reported a 46% y-o-y fall in 3Q2014 earnings to $10.5 million on lower gross margins of 32%, a level last reached in FY2011.

Super Group blamed the results on cost pressures stemming from higher palm kernel oil prices.