OSIM cut to 'hold', target cut to $2.08 by Maybank Kim Eng

Stock Name: OSIM Intl
Company Name: OSIM INTERNATIONAL LTD

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 2.08

SINGAPORE (May 6): Maybank Kim Eng has downgraded OSIM International to "hold" from "buy" and cut its price target to $2.08 from $2.55, citing the company's weak 1Q2015 results.

The new target is based on 18 times, instead of 19 times, projected 2015 earnings.

While the massage-chair maker's poor performance in 1Q2015 was not unexpected, the weakness is likely to persist for the rest of the year as start-up costs for its tea label TWG continue to weigh, according to Maybank Kim Eng analyst Gregory Yap.