Petra Foods downgraded to "hold", target cut to $3.86 by OCBC

Stock Name: Petra Foods
Company Name: PETRA FOODS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 3.86

SINGAPORE (Feb 11): OCBC Investment Research has downgraded Petra Foods to "hold" from "buy" on valuation grounds, noting that the stock now trades at 34.4 times earnings, more than one standard deviation above its two-year average price-earnings ratio.

It has also cut its price target from $4.16 to $3.86 to factor in expected weaker earnings, citing "unusual headwinds" in the form of a weaker currency in Indonesia, one of Petra Foods' key markets.