Singapore Stock Market News

BreadTalk - Priced for Perfection

StockFanatic
Publish date: Thu, 19 Jul 2018, 01:27 PM
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Maintain NEUTRAL with new SGD1.04 TP from SGD0.93, with 5% downside, as we roll over our valuation to FY19F. Our conversation with management has us expecting earnings growth to accelerate in FY19F20F, as BreadTalk's new F&B concepts mature. Still, given YTD uptick in share price, we think investors have priced in the strong execution of new store concepts and future earnings delivery. Potential catalyst includes stronger-than-expected earnings growth. Key risks are longer-than-expected gestation periods and poor traction of new concepts in new geographies.
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