Singapore Stock Market News

Dairy Farm - Awaiting Margin Recovery

StockFanatic
Publish date: Tue, 11 Aug 2015, 02:11 PM
StockFanatic
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HOLD, no strong upside on the horizon. We have a HOLD recommendation on DFI with SOTP-based TP of US$8.54. Valuations are currently at 22.8x FY16F PE which we believe is fair and close to historical average valuations. We believe margin challenges in 1H15 are structural and will take time to recover, even though initiatives are in place to improve the situation. Hence, we do not see strong upside for the stock at this point in time.
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