The lower target price is based on 9x FY2025 P/E. This lower multiple accounts for revenue and margin headwinds including price challenges in Russia and elevated coffee prices.
RHB Singapore continues to like Food Empire, as the research house maintains its “buy” call but with a new target price of $1.23, lower than $1.36 previously.
“We continue to like Food Empire for its strong balance sheet, cash generation ability, market share traction, valuation, and growth led by capacity expansion,” says analyst Alfie Yeo, who has cut FY2025 and FY2026 earnings on higher depreciation due to the construction of new plants.
