“After its efforts to rationalise its product offerings and distribution channel, we believe Delfi’s earnings has reversed to a growth trajectory from FY18 and should accelerate in FY19F/ 20F. In our view, there still seems to be a gap in terms of its share price and valuation, thus offering upside to investors,” adds Yeo.
SINGAPORE (Oct 31): DBS Group Research is reinstating its coverage on Delfi Limited with a target price of $1.49, which implies an upside potential of 49%.
Despite Delfi’s share price being lacklustre due to its downbeat earnings since 2015 on its product rationalisation strategy, analyst Alfie Yeo says, “We believe there is share price upside for Delfi given the valuation discount relative to our projected earnings growth, which we expect to step up to 9%/ 13% for FY19F/20F, from -23%/+6% in FY17/18.”
