This comes in spite of higher amortisation of intangibles, which lead analyst Jarick Seet notes is likely to increase by $2 million per year for the first 30 months but will nonetheless translate to a higher target price even after adjusting for a maximum earn-out.
SINGAPORE (July 4): RHB Research is maintaining its “buy” call on Kimly with a higher target price of 46 cents compared to 43 cents previously, following news of the coffee shop operator’s $16 million acquisition of Asian Story Corp (ASC) and its Asian Story brand portfolio with a 7.7% market share.
The research house is particularly positive on the acquisition with the view that Kimly stands to benefit from longer-term growth, profit accretion and increased cash flow.
