not vested
DJ MARKET TALK: CS Cuts Li & Fung Target To HK$14.70 Vs HK$22.60
1404 [Dow Jones] STOCK CALL: Credit Suisse cuts Li & Fung's (0494.HK) target price to HK$14.70 (15X FY13 P/E) from HK$22.60 but keeps the stock at Neutral.
The house expects the positive margin trend to continue, but it observes slowing retail sales growth in both the U.S. and Europe, and therefore lowers its FY12-14 EPS forecasts by 14%-17%.
CS forecasts Li & Fung's 1H12 net profit will rise 35% on-year to US$319 million, partly driven by a 22% increase in revenue, and the continuing margin improvement since 2H11.
"We also expect Li & Fung to release a long list of acquisitions done, given the available of low-cost targets amid the macro backdrop in western countries."
Source: Dow Jones Newswire