Straco Corp upgraded to "add", target raised to $1.01 by CIMB

Stock Name: Straco
Company Name: STRACO CORPORATION LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.01

SINGAPORE (March 12): CIMB has upgraded Straco Corp to "add" from "hold" and raised its price target from 78 cents to $1.01, after increasing its FY2015 to FY2017 earnings per share estimates by 8% to 14% to factor in expected profits from the Singapore Flyer and higher ticket prices at the Shanghai Ocean Aquarium.

"Straco's share price has taken a beating since it announced its acquisition of the Singapore Flyer, given the market's expectations that the acquisition would be dilutive to earnings," CIMB analyst Jessalyn Chen wrote in a note.