Fraser and Neave downgraded to 'reduce' by CIMB

Stock Name: F & N
Company Name: FRASER AND NEAVE, LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 2.58

SINGAPORE (May 11): CIMB has downgraded Fraser and Neave to "reduce" from "hold" and cut its price target to $2.58 from $2.98.

The changes reflect a 22% to 30% reduction in its earnings per share estimates for FY2015 to FY2017, based on assumptions of slower beer and soft-drink sales.

F&N's earnings for the six months to March 31 was disappointing, as sales of soft drinks in Malaysia were weak while its beer business saw growth come off from previous quarters, according to CIMB analyst Kenneth Ng.