Indeed, Venture’s stock price has retraced 29% from its peak, driven by slower-than-expected uptake in Philip Morris’ Reduced Risk Products (RRP) – such as smokeless e-cigarettes – as well as investors’ fear of “concentration risk” crimping Venture’s 2018 growth.
SINGAPORE (May 8): Citigroup is keeping Venture Corp at “buy” with unchanged $31.74 target, saying sales contribution by Philip Morris International’s looks closer to 12% than the 30% feared by investors.
In addition, Venture’s PE valuations are now at 9% discount to Singapore’s market average but with earnings growth at least twice better, says Citi.
