This comes on expectations of Food Empire to incur more forex losses for FY3Q18, after the group recorded a foreign exchange (forex) loss of US$2 million in its latest 2Q set of results as the RUB and EUR weakened against the USD.
SINGAPORE (Aug 15): RHB Research is downgrading its call on Food Empire to “neutral” from “buy” while lowering its target price on the stock to 60 cents from $1.07 previously to reflect a lower target P/E of 14 times as a result of lower valuation, versus the peer average of 16 times.
The research house has also applied a 10% discount to peers to account for geopolitical risk in Russia and other CIS countries, which believes would limit Food Empire’s upside in the near-term.
