The lower targets price comes on the back of FY18F and FY19F earnings forecast cuts by 15% and 11%, respectively, after reducing assumptions of the number of exhibition sets to eight for FY18F and nine for FY19F, compared to ten each previously – which still remains higher than consensus.
SINGAPORE (Aug 6): DBS Vickers Securities is maintaining its “buy” call on Cityneon Holdings with a lower price target of $1.57 compared to $1.60 previously, after shifting earnings projections to blended FY18F and FY19F earnings instead of FY18F.
The new target price is still based on a P/E valuation peg of 14.4 times, which is at a 20% discount to peers’ average of 18 times P/E.
