OSIM cut to "hold", target cut to $1.94 by DBS Vickers

Stock Name: OSIM Intl
Company Name: OSIM INTERNATIONAL LTD

Research House: DBS Vickers

Price Call: HOLD

Target Price: 1.94

SINGAPORE (Feb 4): DBS Vickers has downgraded OSIM International to "hold" from "buy" and cut its price target from $2.59 to $1.94, which is based on 14 times projected 2015 earnings versus 18 times previously.

"We believe the outlook for massage products in FY15 will remain soft on the back of weak regional consumption," DBS Vickers analysts Alfie Yeo and Andy Sim wrote in a note today.

"Following two quarters (3Q and 4Q) of weakness in massage products, we are not bullish on regional discretionary consumption in Singapore, Malaysia, Hong Kong and China."