Among the sector, the analyst likes Sheng Siong Group (SGX:OV8
) and DFI Retail (DFI), identifying them as his “top picks”. He has given them both “buy” calls with target prices of $1.96 and US$ 2.81($3.79) respectively.
RHB Bank Singapore’s analyst Alfie Yeo has maintained his “overweight” rating on the retail-staples sector as he anticipates growth and recovery to be on track for 2024.
The analyst notes that the sector’s valuation at 10 times to 15 times FY2025 is “compelling”. Overall, the sector has a dividend yield of 5% to 6%.
