“We think Food Empire’s business model has shown its resilience and should continue to enjoy decent growth going forward,” writes Seet in his Feb 13 report.
Jarick Seet of Maybank Securities has initiated coverage on Food Empire with a “buy” call and $1.20 target price, citing the instant beverage maker’s cheap valuations, prospects of a special dividend, and a chance that it is a takeover target.
Seet notes that Food Empire trades at just 7.4x core FY22 earnings, nearly a quarter that of global peer average’s 27x. His target price of $1.20 is pegged to 11x earnings.
