Tang notes that coffee prices had been rising since the start of April, reaching a high of US$240 per pound. The current level remains elevated, attributed to weather concerns in key coffee-producing regions, such as a forecast of near-freezing temperatures in the near future which may harm the supply of coffee.
KGI Securities analyst Tang Kai Jie has maintained “overweight” on Food Empire Holdings (SGX:F03
) with a target price of $1.35.
This is despite the company facing several headwinds in the near term, namely rising cost of raw materials and strong US dollar.
