"We are optimistic about the group’s business going forward and keep an 'outperform' recommendation and increase our target price to $1.40.
Food Empire got to bear with higher costs and there is ongoing geopolitical tension in some of its key markets. Nonetheless, the company is enjoying stronger demand for its ready-mix coffee, which has helped the stock gain nearly 40% year to date.
"While the group continues to face headwinds such as higher coffee prices resulting in price disruptions, as well as a strong US dollar, demand continues to remain robust for the
group’s products," says KGI Securities analyst Tang Kai Jie.
