DJ MARKET TALK: CIMB Raises People's Food Target To S$0.63
0350 GMT [Dow Jones] STOCK CALL: CIMB raises People's Food (P05.SG) target price to S$0.63 from S$0.37 after rolling forward valuation to end-2010 from end-2009.
( rollover can change Target Price by so much ? )
Forecasts EPS CAGR of 22.9% over FY09-11 for China-based pork supplier on stronger topline growth stemming from higher hog prices, improving margins. Says pig farming project well on schedule, with facility expected to be fully operational by end-2010 or early 2011, allowing company to iron out supply issues.
( CAGR of 23% ? )
Still, keeps Underperform call; "we believe the market has more than factored in next year's earnings recovery." Stock +4.0% at S$0.78.
Source: Dow Jones Newswire