Lim & Tan is also of the view that OEL’s decline in student numbers have largely stabilised post its campus shift from Orchard to Pasir Ris, and henceforth will see improvements in financials moving into FY19.
SINGAPORE (May 10): Lim & Tan Securities has started coverage on Overseas Education Limited (OEL) at “buy” with a target price of 48 cents, representing a 60% upside potential from the stock’s 30 cent share price.
In an initiation report on Wednesday, the research house says it expects OEL’s current cash flows and huge cash balance could be used to maintain dividends of 2.75 cents, due to lower capital repayment after refinancing its $117.75 million bond at favourable rates.
