“While some of the original concerns remain valid, we believe the potential outweighs the risk given the recent positive developments,” says Zhou in his report dated July 21.
Citi Research analyst Chong Zhou has upgraded Sheng Siong to “buy”, while increasing his target price to $1.68 previously, following “quality” tender wins and resilient inflation in Singapore. Zhou has taken over coverage of the stock from analyst Luis Hilado, who rated Sheng Siong “sell” with a target price of $1.43 as at July 16.
Since late February, the analyst notes that the stock has corrected -5.8%, a -14.8% underperformance in comparison to the Straits Times Index (STI), which is up 8.7%.
