DBS has also tweaked its FY19-20F numbers slightly higher to account for the larger contribution from mm2’s core business, partly offset by higher interest cost.
SINGAPORE (May 30): DBS Vickers Securities is reiterating its “buy” call on mm2 Asia, but with a lower target price of 70 cents compared to 75 cents previously after implementing a downward valuation PEG adjustment for the group, in line with peers.
Previously valued at 25 times FY19F earnings, the new target price is now pegged to 21 times, which is slightly lower than consensus’ valuation of about 22 times.
