While the analysts have kept their target price unchanged at $1.89, they see Sheng Siong’s shares as attractive for re-entry amid the recent selloff. The target price is based on a P/E multiple of 21x on Sheng Siong’s estimated earnings for FY2023, at -1 standard deviation (s.d.) of the group’s average pre-Covid-19 P/E multiple.
DBS Group Research analysts Andy Sim and Chee Zheng Feng have upgraded their call on the Sheng Siong Group (SGX:OV8
) to “buy” from “hold” due to “attractive industry dynamics and reasonable valuation”.
The group is also deemed as a defensive hedge against a potential recession.
